The Secret Crypto Stock That Could Turn $1,000 Into a Fortune
Key Points
Coinbase is benefitting significantly from increasing institutional crypto adoption.
Rapidly expanding subscription and stablecoin businesses have improved the quality and stability of the company’s revenue mix.
Greater regulatory clarity in the U.S. and EU can further strengthen Coinbase’s position over time.
- 10 stocks we like better than Coinbase Global ›
Coinbase Global (NASDAQ: COIN) is a classic "picks-and-shovels" player benefiting from the rapid institutional adoption of cryptocurrencies. The company acts as a primary custodian for the majority of U.S. spot Bitcoin and Ethereum exchange-traded funds (ETFs), generating recurring and sticky custody revenues that grow as more money flows into these products.
That positioning can become even more advantageous for Coinbase as the regulatory landscape for cryptocurrencies improves, thereby further encouraging institutional participation. In the U.S., lawmakers are preparing key hearings and votes for January 2026 to decide clearer rules for regulating and trading cryptocurrencies. In Europe, Coinbase is taking steps to comply with the European Union's Markets in Crypto-Assets (MiCA) framework by submitting the required disclosures.
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Against this backdrop, even a modest $1,000 investment in Coinbase can turn into a fortune. Here are a few more reasons why.
Image source: Getty Images.
Business momentum
Coinbase is already seeing impressive traction. In the third quarter of fiscal 2025 (ending Sep. 30, 2025), revenues were up nearly 55% year over year to $1.9 billion, while adjusted EBITDA soared 78.3% year over year to $801 million. Subscription and service revenues also account for 40% of the third-quarter revenues. With the revenue mix shifting away from volatile trading fees, Coinbase can report more consistent earnings performance across market cycles.
Assets held on the Coinbase platform were close to $516 billion at the end of the third quarter, supported by growing institutional flows. An increasing amount of assets on the platform translates into higher custody fees as well as deepening relationships with the institutional clients.
Stablecoins are also proving to be a significant growth catalyst. Coinbase generated $355 million in stablecoin-related revenues, driven by high interest rates and the $15 billion USDC balance (a type of stablecoin treated as a digital version of the U.S. dollar) held on the platform. Since USDC is increasingly used for payments and cash management purposes, larger amounts tend to remain on the Coinbase platform. This, in turn, enables Coinbase to generate more interest-based revenues.
Hence, although Coinbase is exposed to cryptocurrency volatility, it remains a smart pick for investors to benefit from long-term cryptocurrency adoption trends.
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Manali Pradhan, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy.
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