William Blair Urges Buy-the-Dip in Coinbase & Circle Stocks
Investment bank William Blair maintains outperform ratings on Coinbase (COIN) and Circle (CRCL), calling the recent sell-off a buy-the-dip opportunity. Analysts Andrew Jeffrey and Adib Choudhury argue bitcoin’s volatility reflects early-stage market structure rather than a loss of long-term value, and deeper liquidity plus regulatory clarity will stabilize BTC. They highlight USDC’s resilient market cap supporting Circle and rising Subscription & Services revenue at Coinbase, which now accounts for 40% of total revenue. With one-third of costs variable and a growing global derivatives business, Coinbase is well insulated against market drawdowns while continuing platform investments. William Blair expects strong fourth-quarter Subscription & Services results driven by USDC rewards and higher staking yields, reinforcing the core Coinbase and USDC value cases.
Bullish
William Blair’s recommendation to buy the dip in Coinbase and Circle is bullish because it underscores confidence in core revenue streams and the stability of USDC amid market turbulence. The report argues bitcoin’s volatility is a short-term structural issue, not a breach of its long-term thesis. Historical parallels, like post-decline rebounds in 2018 and 2020, show that strong fundamental platforms often recover swiftly. In the short term, traders may see a relief rally as USDC rewards and staking yields attract flows. Long term, growing Subscription & Services revenue and a diversified derivatives business position Coinbase to outperform during future market cycles, while USDC’s resilience ensures Circle benefits from global payment adoption.