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.

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Michael Bellusci

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

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