Coinbase

Management is leaning into high-ROIC infrastructure: derivatives expansion via Deribit (cash plus stock consideration), Base investment, and USDC ecosystem growth with Circle.

A 2.0 billion dollar authorization exists to repurchase equity and now a portion of debt, though the company disclosed no repurchases through Q3 2025. Stock-based compensation remains meaningful at 222 million dollars in Q3 2025; dilution should be monitored.

Convertible issuance of about 3.0 billion dollars in August 2025 bolstered resources ahead of acquisitions and investment. We view the Deribit acquisition as strategically sound to diversify revenues and deepen institutional penetration, but we will track integration execution and capital returns discipline through the cycle.