We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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.
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.
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.
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.
Image: Shutterstock
COIN to Buy Clearing Company: Is it Raising Prediction Market Stake?
Key Takeaways
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.
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.
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.
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.