Coinbase’s NFT Segment Could Add More Than $1B to Annual Revenue, Needham Says

Cryptocurrency exchange Coinbase (COIN), in a bullish case, could see an additional $1.26 billion in revenue through its non-fungible token (NFT) segment, Needham equity research analyst John Todaro said in a note to clients Thursday.

While Coinbase’s NFT business hasn’t officially launched for users, CEO Brian Armstrong said during the recent earnings call the market was ripe. As far back as last autumn the company reportedly had more than a waiting list of 1 million customers for its NFT marketplace. The major competitor is OpenSea, which has first mover advantage and user familiarity.
In Todaro’s base case scenario, Coinbase’s NFT platform would have similar fees to competitors at 2.5%, volume of $1.5 billion and post-annual revenue of $450 million. In an aggressive bullish scenario, Coinbase might push fees to 3%, see volume of $3.5 billion and add as much as $1.26 billion in revenue.
For perspective, Coinbase in 2021 had total revenue of $7.4 billion.
Todaro maintained a buy recommendation and $360 price target on Coinbase, or more than double Thursday afternoon’s price of $176.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Michael Bellusci

Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.

Follow @mikeybellusci on Twitter

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.

10 Years of Decentralizing the Future