Bernstein Adjusts Price Target on Coinbase Global to $250 From $330

Strategy (MSTR) shares fell slightly as it reported no bitcoin purchases last week, spending $204.9M on preferred stock buybacks. Its USD Cash dropped to $242.4M. Bitcoin fell below $80K, affecting Coinbase (COIN) and other crypto-related stocks. Strategy's funding strategy is paused until its STRC stock recovers to $100. Q3 earnings are due Oct. 29, but MSCI's Nov. 11 index review is a key event.

Coinbase (COIN) shares fell 4.9% to $156.43 amid a crypto-market selloff, with Bitcoin dropping 8% to $80,500. Analysts provided mixed views, with Bernstein cutting its target to $250 and JPMorgan raising it to $189. Coinbase is set to report Q3 2026 earnings on October 29, with expected revenue of $1.20 billion, down 36% YoY. The broader market was up slightly, indicating sector-specific pressure.

U.S. spot Bitcoin ETFs saw $635.6M in outflows on October 22, the largest since June, with BlackRock's IBIT and Fidelity's FBTC leading withdrawals. Bitcoin's price fell to $80,483 by October 24. Coinbase's stock declined 2.7% on October 23, partly due to ETF outflows. IBIT and FBTC continued to see outflows on October 23. Weekly inflows for the week ending October 22 were $442.7M, up from the previous week's outflows.

Autonomous Research lowered its price target for Coinbase Global to $130 from $135. The company's Irish unit was fined $3.6 million for regulatory failures. Coinbase's stock has declined 8.01% in the past year.

Coinbase (COIN) offers 3.75% annual rewards on USDC holdings, funded through a revenue-sharing agreement with Circle. The OCC's finalized rule, effective Jan. 2027, will judge such programs case by case, leaving Coinbase's rewards potentially vulnerable. USDC-related revenue contributed $292.1M in Q2, about 25% of Coinbase's net revenue, but the impact of losing rewards is uncertain.

The OCC finalized rules for stablecoin issuers, effective Jan. 2027, addressing backing assets, exchangeability, and risk management. Issuers cannot pay interest for holding coins, but third-party rewards may be allowed. Coinbase offers up to 3.5% on USDC balances, compared to average savings rates. Banks may face deposit outflows, impacting lending and profits. The American Bankers Association criticized the decision, citing potential threats to local lending.