Investors Should Buy the Dip in Coinbase (COIN) and Circle (CRCL), Says William Blair
William Blair recommends buying the dip in Coinbase and Circle stock, viewing the crypto sell-off as an attractive entry point.Summary
Investment bank William Blair issued a report urging investors to treat the recent cryptocurrency sell-off as a buying opportunity for Coinbase (COIN) and Circle (CRCL) stock, reiterating an outperform rating for both. The bank views Coinbase's slump as a temporary "air pocket" and sees Circle as a cleaner bet on USDC growth, particularly in B2B payments, noting that both stocks are expected to move together due to their ties to USDC. Analysts attribute the market volatility to an immature market structure, not a broken thesis for Bitcoin, expecting deeper liquidity and regulatory clarity to stabilize the asset. Despite potential short-term pressure on Coinbase's trading revenue, the firm is gaining U.S. spot share and diversifying with a global derivatives business. Furthermore, Coinbase's Subscription & Services (S&S) revenue is growing, supported by a resilient $74 billion USDC market cap, with staking revenue expected to benefit from higher yields during drawdowns.
(Source：CoinDesk)