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COIN vs. MSTR: Which Bitcoin-Focused Stock Has More Upside?
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Key Takeaways
Coinbase is poised to gain from pro-crypto policies and expanding DeFi and stablecoin initiatives.
MSTR's vast bitcoin holdings and capital-raising via preferred shares drive its growth outlook.
The consensus estimate for COIN's 2025 EPS projects a rise, while that for MSTR indicates a decline.
Bitcoin, the leading cryptocurrency, has surged amid growing recognition as a decentralized, non-sovereign asset and due to rising institutional and corporate participation. Supportive U.S. economic policies under President Donald Trump have further accelerated its mainstream acceptance, reinforcing investor confidence and driving momentum across both retail and institutional markets. In this evolving landscape, let’s find out which company is better positioned for long-term growth — Coinbase Global Inc. (COIN - Free Report) or Strategy Inc. (MSTR - Free Report) ?
Coinbase, the largest regulated cryptocurrency exchange in the United States, is well-positioned to capitalize on increased market volatility and rising digital asset valuations. Strategy, on the other hand, is the most dominant player in the Bitcoin Treasury Company space.
Factors to Consider for COIN
Coinbase stands to gain from President Trump’s pro-crypto stance and his emphasis on regulatory clarity. With about 83% of its revenues generated in the United States, the company is well-positioned in a market increasingly recognized as a global hub for crypto innovation. This alignment also supports CEO Brian Armstrong’s vision of transforming Coinbase into the industry’s leading “everything exchange.”
The company continues to broaden its product offerings, recently launching an equity index future tied to the “Magnificent 7” stocks alongside crypto futures. It also extended a $100 million bitcoin-backed loan to CleanSpark, reinforcing its presence in crypto lending. In addition, Coinbase partnered with Morpho and introduced a USDC lending product that allows customers to earn yields of up to 10.8%, deepening its footprint in decentralized finance (DeFi).
Beyond trading, Coinbase is spearheading real-world crypto adoption through initiatives such as Base, its cost-efficient Layer 2 network, and a growing emphasis on stablecoins. These infrastructure-driven moves aim to make Coinbase the preferred platform for institutions and businesses integrating digital assets into their operations. The company is also advancing stablecoin usage through Coinbase Payments, a system designed to lower traditional card processing costs by enabling stablecoin-based online payments.
However, despite these strategic gains, Coinbase continues to face profitability pressures from high transaction and operating expenses. Its performance remains closely tied to the price movements of major cryptocurrencies like Bitcoin and Ethereum. Significant downturns in crypto valuations could weaken earnings, devalue its crypto holdings, and impact liquidity and cash flow stability. Still, Coinbase’s diversified initiatives and regulatory tailwinds position it well for long-term growth in an evolving digital asset landscape.
Factors to Consider for MSTR
Strategy is the world’s largest bitcoin treasury company, holding 640,250 bitcoins as of Oct. 12. Strategy benefits from the Trump administration’s announcement of the establishment of a strategic bitcoin reserve.
The company’s prudent capital-raising strategy through preferred equity offerings — Strike (STRK), Strife (STRF), Stride (STRD), and Stretch (STRC) — has emerged as a significant growth driver. STRK carries an 8% dividend coupon and offers exposure to MSTR through conversion rights, yielding an effective 7.5% as of July 29. STRF provides a 10% cash dividend with enhanced payment protections and an 8.7% effective yield. STRD features a 10% cash dividend and strong collateral backing, with an 11.9% effective yield. STRC delivers a variable monthly dividend, yielding 9.5% as of July 30. As of Oct. 12, the available issuance and sale capacities were $20.37 billion (STRK), $1.699 billion (STRF), $4.15 billion (STRD) and $4.2 billion (STRC).
Meanwhile, product licenses and subscription services revenues surged 44% year over year to $48 million, representing 41.9% of total revenues, entirely derived from software. This highlights the company’s growing focus on high-margin, recurring software income.
Strategy projects a 30% bitcoin yield and $20 billion in gains if Bitcoin reaches $150,000 by year-end. For 2025, the company anticipates operating income of $34 billion, net income of $24 billion and earnings of $80 per share, assuming the same bitcoin price target — underscoring its bullish outlook and leveraged exposure to digital asset appreciation.
Yet, MSTR remains unprofitable and is not expected to bounce back any time soon.
Estimates for COIN and MSTR
The Zacks Consensus Estimate for COIN’s 2025 revenues implies a 7.6% year-over-year increase, while that for EPS implies a 0.4% year-over-year increase. EPS estimates have moved north over the past 30 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MSTR’s 2025 revenues implies a 0.7% increase, while that for EPS indicates a 134.1% year-over-year decrease. EPS estimates have remained unchanged over the past 60 days.
Image Source: Zacks Investment Research
Price Performance of COIN and MSTR
COIN shares have rallied 43.1% year to date, while MSTR shares have lost 1.7% in the same time.
Image Source: Zacks Investment Research
Are COIN and MSTR Shares Expensive?
Coinbase is trading at a forward 12-month price-to-earnings multiple of 56.55, below its median of 59.55 over the past year. MSTR’s forward 12-month price-to-earnings multiple sits at -93.45, worse than its median of -27.11 over the past year.
Image Source: Zacks Investment Research
Conclusion
Coinbase benefits from a well-diversified revenue base that includes trading fees, staking, custodial services and derivatives, all bolstered by growing institutional demand. Its inclusion in the S&P 500, the acquisition of Deribit and significant involvement in USDC custody strengthen its regulatory standing and support its long-term strategic trajectory.
Despite growing bitcoin holdings, Strategy suffers from a stretched valuation, challenging macroeconomic conditions and uncertainty about the U.S. government shutdown that increases volatility in bitcoin trading. Modest top-line growth and increasing 2025 losses make the stock risky for investors.
Both COIN and MSTR carry a Zacks Rank #3 (Hold). However, price appreciation and near-term growth prospects place COIN ahead of MSTR.
Image: Bigstock
COIN vs. MSTR: Which Bitcoin-Focused Stock Has More Upside?
Key Takeaways
Bitcoin, the leading cryptocurrency, has surged amid growing recognition as a decentralized, non-sovereign asset and due to rising institutional and corporate participation. Supportive U.S. economic policies under President Donald Trump have further accelerated its mainstream acceptance, reinforcing investor confidence and driving momentum across both retail and institutional markets. In this evolving landscape, let’s find out which company is better positioned for long-term growth — Coinbase Global Inc. (COIN - Free Report) or Strategy Inc. (MSTR - Free Report) ?
Coinbase, the largest regulated cryptocurrency exchange in the United States, is well-positioned to capitalize on increased market volatility and rising digital asset valuations. Strategy, on the other hand, is the most dominant player in the Bitcoin Treasury Company space.
Factors to Consider for COIN
Coinbase stands to gain from President Trump’s pro-crypto stance and his emphasis on regulatory clarity. With about 83% of its revenues generated in the United States, the company is well-positioned in a market increasingly recognized as a global hub for crypto innovation. This alignment also supports CEO Brian Armstrong’s vision of transforming Coinbase into the industry’s leading “everything exchange.”
The company continues to broaden its product offerings, recently launching an equity index future tied to the “Magnificent 7” stocks alongside crypto futures. It also extended a $100 million bitcoin-backed loan to CleanSpark, reinforcing its presence in crypto lending. In addition, Coinbase partnered with Morpho and introduced a USDC lending product that allows customers to earn yields of up to 10.8%, deepening its footprint in decentralized finance (DeFi).
Beyond trading, Coinbase is spearheading real-world crypto adoption through initiatives such as Base, its cost-efficient Layer 2 network, and a growing emphasis on stablecoins. These infrastructure-driven moves aim to make Coinbase the preferred platform for institutions and businesses integrating digital assets into their operations. The company is also advancing stablecoin usage through Coinbase Payments, a system designed to lower traditional card processing costs by enabling stablecoin-based online payments.
However, despite these strategic gains, Coinbase continues to face profitability pressures from high transaction and operating expenses. Its performance remains closely tied to the price movements of major cryptocurrencies like Bitcoin and Ethereum. Significant downturns in crypto valuations could weaken earnings, devalue its crypto holdings, and impact liquidity and cash flow stability. Still, Coinbase’s diversified initiatives and regulatory tailwinds position it well for long-term growth in an evolving digital asset landscape.
Factors to Consider for MSTR
Strategy is the world’s largest bitcoin treasury company, holding 640,250 bitcoins as of Oct. 12. Strategy benefits from the Trump administration’s announcement of the establishment of a strategic bitcoin reserve.
The company’s prudent capital-raising strategy through preferred equity offerings — Strike (STRK), Strife (STRF), Stride (STRD), and Stretch (STRC) — has emerged as a significant growth driver. STRK carries an 8% dividend coupon and offers exposure to MSTR through conversion rights, yielding an effective 7.5% as of July 29. STRF provides a 10% cash dividend with enhanced payment protections and an 8.7% effective yield. STRD features a 10% cash dividend and strong collateral backing, with an 11.9% effective yield. STRC delivers a variable monthly dividend, yielding 9.5% as of July 30. As of Oct. 12, the available issuance and sale capacities were $20.37 billion (STRK), $1.699 billion (STRF), $4.15 billion (STRD) and $4.2 billion (STRC).
Meanwhile, product licenses and subscription services revenues surged 44% year over year to $48 million, representing 41.9% of total revenues, entirely derived from software. This highlights the company’s growing focus on high-margin, recurring software income.
Strategy projects a 30% bitcoin yield and $20 billion in gains if Bitcoin reaches $150,000 by year-end. For 2025, the company anticipates operating income of $34 billion, net income of $24 billion and earnings of $80 per share, assuming the same bitcoin price target — underscoring its bullish outlook and leveraged exposure to digital asset appreciation.
Yet, MSTR remains unprofitable and is not expected to bounce back any time soon.
Estimates for COIN and MSTR
The Zacks Consensus Estimate for COIN’s 2025 revenues implies a 7.6% year-over-year increase, while that for EPS implies a 0.4% year-over-year increase. EPS estimates have moved north over the past 30 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MSTR’s 2025 revenues implies a 0.7% increase, while that for EPS indicates a 134.1% year-over-year decrease. EPS estimates have remained unchanged over the past 60 days.
Image Source: Zacks Investment Research
Price Performance of COIN and MSTR
COIN shares have rallied 43.1% year to date, while MSTR shares have lost 1.7% in the same time.
Image Source: Zacks Investment Research
Are COIN and MSTR Shares Expensive?
Coinbase is trading at a forward 12-month price-to-earnings multiple of 56.55, below its median of 59.55 over the past year. MSTR’s forward 12-month price-to-earnings multiple sits at -93.45, worse than its median of -27.11 over the past year.
Image Source: Zacks Investment Research
Conclusion
Coinbase benefits from a well-diversified revenue base that includes trading fees, staking, custodial services and derivatives, all bolstered by growing institutional demand. Its inclusion in the S&P 500, the acquisition of Deribit and significant involvement in USDC custody strengthen its regulatory standing and support its long-term strategic trajectory.
Despite growing bitcoin holdings, Strategy suffers from a stretched valuation, challenging macroeconomic conditions and uncertainty about the U.S. government shutdown that increases volatility in bitcoin trading. Modest top-line growth and increasing 2025 losses make the stock risky for investors.
Both COIN and MSTR carry a Zacks Rank #3 (Hold). However, price appreciation and near-term growth prospects place COIN ahead of MSTR.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.