Coinbase's Diversification and Samsung Pact Signal Crypto's Mainstream Takeoff, Shares Up 2%

Coinbase stock rose more than 2% on October 3, driven by a strategic upgrade from Rothschild & Co. and a significant partnership with Samsung. The upgrade, which set a $417 price target for Coinbase, underscored the firm's confidence in the company's evolving business model. Rothschild highlighted Coinbase's shift away from reliance on retail transaction fees, which accounted for 90% of revenue in the past but are projected to fall to nearly 50% by next year. This transformation is attributed to expanding revenue streams in institutional trading, derivatives, and subscription servicestitle1^[1].

The Samsung partnership further amplified investor enthusiasm. Coinbase services were integrated into Samsung's native wallet on 75 million U.S. Galaxy devices, marking one of the largest consumer distribution plays in the company's historytitle1^[1]. The integration allows users to access crypto trading, staking, and payments directly through Samsung Wallet, embedding Coinbase's tools into everyday functions like transit passes and loyalty cards. This move is expected to significantly expand Coinbase's user base and mainstream adoption of digital assetstitle1^[1].

Rothschild's analysis emphasized Coinbase's diversification as a key strength. The firm noted that revenue from USDC and Coinbase's Layer-2 network, Base, is growing and will help offset fee compression pressures. This contrasts with competitors like Robinhood, which face challenges in maintaining revenue stabilitytitle1^[1]. The partnership with Samsung also aligns with Coinbase's broader strategy to integrate crypto into daily life, leveraging Samsung's global reach to normalize digital asset usagetitle1^[1].

The Samsung deal includes exclusive benefits for Galaxy users, such as a free three-month subscription to Coinbase One, offering zero trading fees on select assets and enhanced staking rewards. Additionally, users receive a $25 credit after their first trade. This partnership builds on earlier collaborations, including Samsung Pay integration for crypto purchases in July 2025. The companies plan to expand the initiative globally in the coming months, potentially reaching over a billion Galaxy users.

Analysts view these developments as a validation of Coinbase's pivot to a diversified financial services platform. The company's recent acquisition of Deribit for $2.9 billion and its role as custodian for eight of 11 U.S. spot Bitcoin ETFs underscore its institutional focus. With Bitcoin trading near record highs and institutional adoption accelerating, the Samsung partnership positions Coinbase to capitalize on a broadening crypto ecosystem.

The stock's 2% gain reflects investor optimism about Coinbase's ability to balance revenue sources while expanding into new markets. Rothschild's $417 target implies significant upside from current levels, supported by projected growth in institutional trading and Layer-2 network activitytitle1^[1]. Meanwhile, the Samsung integration highlights the potential for mass adoption, as crypto tools become embedded in widely used consumer technology.