Major Banks Signal Confidence in Coinbase Amid Strategic Shift

Coinbase shares have reached a pivotal juncture following a significant correction of approximately 40% from their July 2025 highs. As the stock price has recently shown weakness, attention is now focused on two separate bullish calls from heavyweight Wall Street institutions. These analysts are looking beyond current market volatility, anticipating a fundamental reassessment of the company's business model.

The positive sentiment from analysts appears to be mirrored by concrete action from major funds. Data released over the weekend revealed that FengHe Fund Management substantially increased its stake in Coinbase. The fund boosted its position by over 119%, acquiring an additional 38,000 shares during the latest reporting period. Such aggressive accumulation during a period of price weakness is frequently interpreted as a sign of long-term conviction from sophisticated investors.

This activity follows a recommendation from Goldman Sachs just days earlier, where the investment bank issued a buy recommendation with a price target of $303 per share. The coordinated support from these large market participants suggests they view the recent share price decline as a strategic entry point.

Bank of America Upgrades with Significant Price Target

A key development for investors arrived on Friday from Bank of America (BofA). Analyst Craig Siegenthaler upgraded the stock from "Neutral" to "Buy," assigning a new price objective of $340. Based on Friday's closing price of $240.78, this implies an upside potential of roughly 41%.

Should investors sell immediately? Or is it worth buying Coinbase?

This optimistic assessment is rooted in Coinbase's ongoing evolution into what BofA terms an "Everything Exchange." The bank highlights the company's successful diversification beyond reliance on pure cryptocurrency trading fees. Instead, Coinbase is unlocking new revenue streams by integrating traditional financial services, including stock and ETF trading, alongside prediction markets. The tokenization of real-world assets (RWA) and the growth of its proprietary "Base" blockchain are also cited as central growth drivers.

Operational Setback in Argentina

Despite the encouraging analyst notes, investors must also consider operational challenges. On Saturday, the company announced it would pause key services in Argentina. Effective January 31, 2026, the trading of pesos for USDC and local bank withdrawal services will be suspended.

While management described the move as an "intentional pause" for strategic realignment, the step effectively represents a withdrawal from a key Latin American market. This comes just one year after the company secured regulatory approval to operate there.

Conclusion: Balancing Strategy with Market Realities

Coinbase stock is currently caught between competing forces. On one side, operational headwinds in South America and a technical breakdown below the $250 level present near-term challenges. On the other, the clear buy recommendations from Bank of America and Goldman Sachs provide a strong fundamental counterbalance. The future trajectory of the share price will likely hinge on whether the new business lines of the "Everything Exchange" can grow rapidly enough to offset revenue losses from markets like Argentina.