Crypto Surge Lifts Coinbase Shares, Overcoming Dual Analyst Downgrades

Coinbase Stock Rises Despite H.C. Wainwright Downgrade Over Trading Concerns

Shares of Coinbase (COIN) gained more than 4% on Thursday, shrugging off a rare double downgrade from H.C. Wainwright, which cautioned that the crypto exchange could deliver disappointing second-quarter results.

Analyst Mike Colonnese lowered his rating on Coinbase from buy to sell, reversing his previous bullish stance. He highlighted concerns about slowing spot trading activity and argued that the stock’s recent rally may have gone too far.

“We still consider Coinbase a top-tier crypto exchange and remain constructive on the sector overall,” Colonnese wrote in a client note. “However, we believe the valuation has surpassed near-term fundamentals after the stock’s roughly 150% run-up since April.”

He expects a “meaningful decline” in spot trading volumes on centralized exchanges during the second quarter, which could pressure Coinbase’s core transaction revenue. On the brighter side, he anticipates that revenue from subscriptions and services—including staking and custody—could exceed forecasts.

Colonnese’s cautious outlook differs from much of Wall Street. While Barclays has also signaled a weak Q2, it maintains a neutral rating. Oppenheimer, meanwhile, remains upbeat with an outperform recommendation on the stock.

Despite the downgrade, Coinbase shares closed up nearly 4% Thursday, buoyed by ongoing gains in crypto markets. Bitcoin rose an additional 2%, hitting a new all-time high above $113,000.