Back to top

Image: Shutterstock

COIN to Buy Clearing Company: Is it Raising Prediction Market Stake?

Read MoreHide Full Article

Key Takeaways

  • Coinbase will acquire The Clearing Company to expand its prediction market presence.
  • This marks COIN's 10th acquisition in 2025 as it builds a broader investment platform.
  • COIN launched a market last week, letting users trade on real-world event outcomes.

In its effort to strengthen its presence in the prediction market, Coinbase Global (COIN - Free Report) has agreed to buy The Clearing Company. The transaction is expected to be closed next month.  Last month, COIN joined forces with Kalshi to venture into the prediction market space. 

Though at a nascent stage, the prediction market opens a powerful gateway to a highly promising event-based trading market. Penetrating the prediction market underscores COIN’s efforts to diversify revenues from transaction volumes.  Last week, COIN launched a prediction market, allowing users to trade on the outcomes of real-world events, such as elections, inflation rates, sports results and scientific developments. This buyout thus comes at an opportune time.

Max Branzburg, Coinbase’s vice president of product management, stated “More of the financial system is moving onchain, and prediction markets are part of that shift."  "By combining The Clearing Co team’s unique experience and talent with Coinbase’s global platform, we can help bring this category to a much wider audience and support builders who want to innovate on top of it” as per Block report.

This marks COIN’s 10th acquisition this year as it expands capabilities and accelerates product development. Coinbase strives to evolve continuously — not only to facilitate crypto trading but also with tokenized financial instruments, stablecoin use cases and alternative investment products. COIN continues to make strategic buyouts in building itself as the industry’s premier “everything exchange.”

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 lost 7.5% 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 41.83, significantly above the industry average of 23.72. 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 fourth-quarter 2025 and first-quarter 2026 EPS has moved 2 cents south in the past seven days. The consensus estimate for 2025 witnessed no movement but the same for 2026 moved 7 cents north in the last seven days.
 

Zacks Investment Research
Image Source: Zacks Investment Research

The consensus estimate for COIN’s 2025 and 2026 revenues indicates year-over-year increases. Though the consensus estimate for the company’s 2025 EPS indicates an increase, 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