Bloomberg: Crypto Stocks Are Trading at Steep Discounts, COIN Basically "Sold Out"

**Bernstein: Crypto Stocks Trade at 'Significant Discount' Amid Short-Term Weakness** On March 30, Bernstein noted cryptocurrency-related stocks are trading at a "significant discount" following a sharp sell-off, with current valuations reflecting weak short-term sentiment rather than long-term growth potential. In a client report Monday, the research and brokerage firm said digital asset infrastructure stocks—including exchanges, brokers, and tokenization platforms—have fallen ~60% from recent highs, even as their underlying businesses continue to grow in areas like stablecoins, derivatives, prediction markets, and real-world asset tokenization. Bernstein expects the current weakness to persist through first-quarter earnings releases, then stabilize, adding the Q1 earnings season may mark a bottom. This view builds on the firm’s recent stance that some crypto stock sell-offs—including Circle-linked names, driven by U.S. regulatory concerns—have already overshot fundamentals. The firm keeps its "Outperform" rating on Coinbase (ticker: COIN) but cut its price target to $330 from a prior $440. While Q1 trading volumes were soft, analysts see profit growth staying strong. They project Coinbase’s revenue will grow at a ~26% compound annual growth rate (CAGR) through 2027. Bernstein sees stablecoins driving much of the growth—Coinbase accounts for roughly half of Circle’s USDC revenue—while derivatives and newer products are gaining more share of the revenue mix. The report also notes subscription and services revenue (including stablecoin revenue) acts as a buffer against crypto price swings, though spot trading volumes remain cyclical. This take echoes Bernstein’s prior call that Coinbase stock is "cheap enough to be hard to sell," with the firm then noting rising trading volumes and product expansion will drive meaningful upside.