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


Cryptocurrency exchange Coinbase (COIN) in a bullish case could see an additional $1.26 billion in revenue through its 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 on the recent earnings call said the market was ripe, and the company as far back as last fall reportedly had more than a 1 million customer wait list 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 continues with 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 is CoinDesk’s crypto payments reporter.

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