Netflix has a successful business model that generates substantial revenue, with its stock soaring 1,140% in the last decade. Coinbase is aiming to emulate this model in the crypto space, with a focus on subscription-like cash flows. However, competition in the crypto industry may pose challenges for Coinbase, unlike Netflix’s early days.

Coinbase’s strategy involves turning user activity into a habit, with paid memberships offering tiered benefits and consistent revenue. The company’s subscriptions and services segment reached $656 million in revenue in the second quarter of 2025. Coinbase’s platform advantage, similar to Netflix, includes being the custodian for a majority of new Bitcoin exchange-traded funds and being the preferred on-ramp for new crypto investors.

Investors considering Coinbase should note potential challenges from traditional financial institutions entering the crypto space. While Coinbase’s business model has shown promising growth, maintaining a competitive edge will be crucial for long-term success. The company’s success may mirror Netflix’s evolution, but it will require strategic advantages to stay ahead of the competition.

Before investing in Coinbase Global, investors should consider other top stock picks from The Motley Fool’s Stock Advisor team. While Coinbase wasn’t on their list, their selections have historically outperformed the market significantly. With average returns of 1,064%, joining Stock Advisor could provide valuable insights into potential high-growth investments.

Disclosure: The author holds positions in Bitcoin, and The Motley Fool has positions in Bitcoin and Netflix, recommending Coinbase Global. The opinions expressed are the author’s and do not necessarily reflect those of Nasdaq, Inc.

Read more at Nasdaq: Why Coinbase Could Be the Netflix of Crypto