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Coinbase Gained Modest Share Following FTX Collapse, Says Mizuho

Sam Boughedda trader
Updated 18 Nov 2022

Coinbase (NASDAQ: COIN) shares are down over 5% Friday after the stock was downgraded by BofA, while Mizuho Securities said the company has only gained a modest market share as a result of the FTX collapse.


In a research note, Mizuho analyst Dan Dolev said Coinbase investors shouldn’t cheer the FTX “debacle,” which has only experienced modest share gains over the past week. He added that investors shouldn’t cheer this as other exchanges, such as Binance, have gained more share. Dolev also said the FTX situation only offered a “small respite” to Coinbase.

“After a brief spike, daily industry volumes are back to trending 30-40% below YTD averages, suggesting worn-out consumers who appear uninterested in the category,” wrote Dolev, who maintained a Neutral rating and $42 per share price target on Coinbase.

Meanwhile, BofA downgraded Coinbase stock to Neutral from Buy, lowering their price target on the stock to $5 from $77. Analyst Jason Kupferberg explained the outlook is even more uncertain and sees a “number of new headwinds” for the company over the near to medium term due to the FTX collapse. The analyst stated the firm is confident that Coinbase is not “another FTX,” but added that it does not make them immune to broader fallout in the crypto ecosystem.

On Wednesday, Cathie Wood’s ARK INvestment purchased 245.6k shares of Coinbase.

Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.