Coinbase stock (COIN) dropped 17% after missing earnings expectations. Analysts believe strategic partnerships and acquisitions will boost revenue in future quarters. Despite a low Q2 revenue and weak trading volumes, COIN closed at $314.69, 25% below its 52-week high of $419.78.

Coinbase reported $1.5 billion in revenue, 6% below estimates, with $512 million in adjusted EBITDA for Q2 2024. The decline in revenue coincided with lower cryptocurrency trading volumes due to global conflicts and tariff talks. However, Bernstein analysts highlighted growth opportunities in Coinbase’s latest report.

Coinbase acquired Deribit to offer perpetual futures in the U.S., aiming to tap into the lucrative derivatives market. The platform’s expansion plans include enabling betting on real-world events and trading various assets, diversifying revenue streams. The move could mitigate revenue impact during crypto market downturns, according to analysts.

Coinbase’s partnership with J.P. Morgan allows Chase clients to link accounts for funding. This collaboration could increase Coinbase’s customer base and revenue. Additionally, customers can exchange Chase rewards points for Circle’s USDC stablecoin using Base, Coinbase’s decentralized network. Analysts believe these partnerships will accelerate crypto adoption and benefit Coinbase’s business.

Read more at Yahoo Finance: Why Analysts Aren’t Worried by Coinbase’s Stock Dive After Earnings Miss