Back to top

Image: Bigstock

Coinbase's Echo Buyout: Is it Building on the Onchain Ecosystem?

Read MoreHide Full Article

Key Takeaways

  • Coinbase acquired Echo in a $375M cash-stock deal, expanding its onchain capital-raising reach.
  • The Echo deal builds on Liquifi and Deribit buys, strengthening COIN's end-to-end crypto services.
  • COIN's focused acquisitions drive growth, broaden revenues and accelerate its entry into new markets.

Coinbase Global (COIN - Free Report) recently bought Echo in a cash-stock transaction worth $375 million. Echo is an onchain platform for raising capital. This marks another milestone after the company’s Deribit acquisition in May. COIN continues to make strategic buyouts to position itself as the industry’s premier “everything exchange.”

The Echo buyout complements COIN’s July 2025 acquisition of Liquifi, a token management platform, which extended the company’s reach into tokenization and digital cap table solutions, thus laying the foundation for a potential U.S. launchpad once regulatory clarity emerges.  Per COIN’s release, “While Liquifi strengthened our ability to support builders at the start of their journey, Echo extends that support into fundraising.”

The acquisition will help the crypto-leader offer an all-inclusive solution — from launch to fundraising to secondary trading-for crypto projects and investors. Coinbase intends to begin offering crypto token sales through Sonar and then expand to tokenized securities and real-world assets using Echo’s infrastructure for broader market reach.

COIN believes the future of finance is on-chain and therefore it is leaving no stone unturned to build on the same. COIN stays focused on enhancing the utility of crypto via Base, which helps blockchains scale.   

Coinbase is increasingly leaning on inorganic growth, and its acquisition story is impressive.  COIN’s targeted acquisitions are broadening its capabilities, diversifying revenues and expanding its geographical presence. In the rapidly evolving digital asset market, these deals provide Coinbase with accelerated entry into growth verticals.

What About COIN’s Peers?    

Robinhood Markets (HOOD - Free Report) is driving growth through strategic acquisitions that broaden its offerings, boost global crypto reach and enhance institutional services. Robinhood’s deals for Bitstamp, WonderFi and Pluto Capital highlight its expansion into international markets and AI innovation. With these moves, Robinhood is diversifying revenues and reinforcing its long-term scalability.

Interactive Brokers Group’s (IBKR - Free Report) strategic acquisitions helped expand services, improve technology and grow its client network. Interactive Brokers’ acquisitions of FutureTrade, Covestor and Folio’s retail accounts enhanced its trading, wealth management and retail presence. With these strategic moves, Interactive Brokers strengthened its competitiveness and positioned itself for sustainable long-term expansion.

COIN’s Price Performance

Shares of COIN have gained 42.8% year to date, outperforming the industry.    

Zacks Investment Research
Image Source: Zacks Investment Research

COIN’s Expensive Valuation

COIN trades at a price-to-earnings value ratio of 56.31, above the industry average of 24.14. It carries a Value Score of F.

Zacks Investment Research
Image Source: Zacks Investment Research

Estimate Movement for COIN

The Zacks Consensus Estimate for COIN’s third-quarter and fourth-quarter 2025 EPS witnessed 3% and 0.9% northward movement, respectively, over the past seven days. The consensus estimate for full-year 2025 and 2026 saw 0.7% and 0.5% northward movement, respectively, in the last seven days.
 

Zacks Investment Research
Image Source: Zacks Investment Research

The consensus estimates for COIN’s 2025 and 2026 revenues indicate year-over-year increases. Though the consensus estimate for COIN’s 2025 EPS indicates an improvement, the same for 2026 indicates a decline. 

COIN stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Interactive Brokers Group, Inc. (IBKR) - free report >>

Coinbase Global, Inc. (COIN) - free report >>

Robinhood Markets, Inc. (HOOD) - free report >>

Published in