Coinbase and Circle Look Attractive on Pullbacks, According to William Blair

William Blair says the latest crypto sell-off has created an appealing entry point for both Coinbase and Circle, arguing that the fundamental bullish cases for USDC and bitcoin remain solid despite recent volatility.

In a Monday note, the investment bank characterized Coinbase’s (COIN) recent pullback as a temporary “air pocket” rather than a sign of deeper trouble. The firm reiterated its outperform rating and encouraged investors to use the downturn to build positions. Coinbase shares were trading 2.6% higher early Monday at $246.53.

The bank delivered a similar view on Circle (CRCL), which has fallen nearly 80% from its 52-week peak even as USDC’s market capitalization has held steady. With both companies closely tied to the growth of USDC, William Blair expects their equities to track each other, framing Coinbase as the broader gateway to crypto and Circle as the more direct bet on USDC adoption — especially in cross-border B2B payments.

Analysts Andrew Jeffrey and Adib Choudhury said bitcoin’s sharp slide does little to challenge their long-term outlook. They attributed the volatility to structural imbalances in a still-developing market, where concentrated holdings and a surge of first-time ETF buyers can amplify price moves. Over time, they expect deeper liquidity and clearer regulatory frameworks to stabilize bitcoin and help embed it into mainstream portfolios.

While Coinbase may face near-term pressure on trading volumes, the analysts noted the company is steadily expanding its U.S. spot market share and building out a global derivatives business that offers more diversified revenue. With roughly a third of its expenses variable, Coinbase also has room to defend margins while continuing to scale the platform.

William Blair also highlighted the resilience of Coinbase’s Subscription & Services segment, now generating around 40% of company revenue. Despite the broader market downturn, USDC’s $74 billion supply has remained stable, supporting ongoing revenue from USDC rewards. The firm said it remains confident in its $777 million fourth-quarter S&S forecast, adding that staking yields and lower redemption activity during market stress should provide an additional lift.