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Mizuho Cuts Crypto Exchange Coinbase to Underperform, Trims Price Target
The bank’s analysis shows that 2023 revenue estimates for the crypto exchange are overly optimistic.
By Will Canny
Updated May 9, 2023, 4:04 a.m. Published Dec 9, 2022, 1:51 p.m.
Mizuho cut its rating on crypto exchange Coinbase's shares on Friday to underperform from neutral and lowered its price target to $30 from $42, saying it expects depressed crypto trading volume in 2023 and 2024 to result in lower revenue for the exchange.
The stock fell 2.8% to $41.60 in premarket trading.
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In a research report, Mizuho also said that interest income from Circle’s USD coin (USDC) has become increasingly important for Coinbase, accounting for 10%-15% of third-quarter revenue, amid deteriorating sentiment and trading volumes.
Any potential changes to Coinbase’s USDC income from Circle could have an “amplified adverse effect on its profitability,” the report said.
Coinbase, which is a co-founder of USDC, on Friday waived off conversion fees for users who wish to switch to USDC from Tether's USDT.
Irrespective of interest income risks, the bank’s analysis shows that 2023 revenue estimates are likely overly optimistic.
Coinbase CEO Brian Armstrong said on Wednesday that the company’s revenue will be half or less what it was last year as the exchange struggles amid sharp drops in cryptocurrency prices and continuing ripple effects from multiple bankruptcies this year, including the recent collapse of rival exchange FTX.
The company's shares have fallen over 80% this year, and the stock has been one of the worst performers on the Nasdaq index.
Read more: Crypto Exchange Coinbase Asks Users to Switch USDT for USDC
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Bilinmesi gerekenler:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
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USDC Issuer Circle Secures Abu Dhabi's ADGM License in Middle East Expansion
The license allows Circle to expand USDC payment and settlement tools across the United Arab Emirates.
Bilinmesi gerekenler:
- Circle has obtained a Financial Services Permission license from Abu Dhabi Global Market, allowing it to operate as a Money Services Provider in the UAE.
- The stablecoin issuer has appointed Dr. Saeeda Jaffar, former manager at payments firm Visa.
- The approval comes as part of the UAE's emergence as a global hub for regulated digital assets, following similar licenses granted to Binance.
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