Despite the perception held by many Wall Street analysts that Coinbase Global is primarily a cryptocurrency exchange that performs well during market upswings and poorly when the market declines, a deeper examination suggests the company may be significantly undervalued due to its role as a key player in crypto infrastructure.
The term “crypto infrastructure” encompasses a variety of foundational technologies that support the broader cryptocurrency and blockchain ecosystem. Coinbase is uniquely positioned in this space, actively developing technologies, tools, and platforms tailored for both retail and institutional investors.
A notable development is Coinbase’s launch of the Base blockchain in August 2023, marking the company as the first publicly traded entity to create its own blockchain. This Layer-2 scaling network for Ethereum has since gained traction, providing a platform for experimenting with decentralized finance (DeFi), the tokenization of real-world assets (RWA), and facilitating payments for artificial intelligence (AI) agents.
Additionally, the company’s “Everything Exchange” strategy, initiated in December, aims to dramatically expand the range of assets available for trading around the clock. This initiative could potentially lead to tens of thousands of assets trading on Coinbase, enhancing revenue streams and profitability for the foreseeable future.
Coinbase has also ventured into stock and ETF trading for U.S. customers and partnered with Kalshi to introduce prediction markets, further diversifying its offerings. Its recent push into Crypto-as-a-Service (CAAS) for financial institutions allows these entities to enhance their digital asset services. Moreover, Coinbase has established itself as the “digital vault” for crypto exchange-traded funds, aligning itself with emerging trends in the financial market.
Despite these advancements, Coinbase’s stock has underperformed, having dropped 20% in 2026 amidst declining cryptocurrency prices, particularly Bitcoin. Investors have shown a preference for opportunities outside the crypto sector, especially as many crypto infrastructure firms pivot toward artificial intelligence and high-performance computing. Some companies have even sold off their Bitcoin holdings to finance expansions into AI.
This shift in the market has led to a premium being placed on AI stocks, which may influence investor sentiments toward Coinbase. However, the view here is that Coinbase has evolved beyond merely being a cryptocurrency exchange. It has established itself as a crucial provider of crypto infrastructure, making it worthy of a more favorable appraisal by current and prospective investors.
