Coinbase (COIN) Stock: Jim Cramer Recommends Buying Bitcoin Instead

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TLDR

  • Jim Cramer advised investors to purchase Bitcoin instead of Coinbase stock, describing it as a “cleaner” trade with lower competition risk
  • Coinbase fell short of Q4 estimates, posting an EPS of $0.66 compared to the expected $0.83, and saw a 21.6% year-over-year decline in revenue
  • Jefferies Financial Group reduced its Coinbase stake by 95.2% in Q3, trimming its holdings to only 3,017 shares
  • CEO Brian Armstrong sold 40,000 shares in January for approximately $9.96 million; insiders offloaded more than $84 million in shares during Q4
  • The stock is trading at $193.35, significantly below its 52-week high of $444.64, with analysts maintaining a consensus “Hold” rating and a price target of $270.51

Coinbase Global (COIN) is currently facing pressure from multiple angles. Weak earnings, declining analyst price targets, substantial insider selling, and now one of television’s most widely watched market commentators urging viewers to avoid the stock entirely.

Coinbase Global, Inc., COIN
COIN Stock Card

During a recent episode of Mad Money, Jim Cramer shared his thoughts on Coinbase after a viewer inquired about the stock. His stance was direct: opt to buy Bitcoin instead.

“What I would recommend you do is simply purchase Bitcoin. It’s a cleaner option. It has less to do with concerns about competition, such as from BlackRock or Fidelity,” Cramer stated.

This wasn’t Cramer’s first criticism of the stock. On February 6, he stated he had no interest in “touching” Coinbase, citing the expansion of crypto into mainstream platforms like Robinhood as a threat to its competitive advantage.

Earnings Miss Added to the Pressure

Coinbase released its Q4 earnings on February 12, and the figures were underwhelming. The company reported an EPS of $0.66, falling $0.17 short of the consensus estimate of $0.83. Revenue stood at $1.78 billion, compared to the projected $1.86 billion.

This also represents a 21.6% revenue decline compared to the same quarter last year, when EPS was $4.68. The net margin is 17.55%, and return on equity is 8.68%.

Analysts reacted by lowering their price targets. JPMorgan reduced its target from $399 to $290, while maintaining an “overweight” rating. Rosenblatt cut its target from $325 to $240. Zacks downgraded the stock to a “strong sell.”

The current consensus rating is “Hold,” with an average price target of $270.51. Among the 33 tracked analysts, 19 rate it as a Buy, 11 as a Hold, and 3 as a Sell.

Institutional Selling and Insider Activity

Jefferies Financial Group made a significant exit. The firm reduced its Coinbase stake by 95.2% in Q3, selling 60,248 shares and keeping only 3,017. Its remaining holding was valued at approximately $1.02 million at the time of filing.

Insider selling has also been substantial. CEO Brian Armstrong sold 40,000 shares on January 5 at an average price of $248.96, generating nearly $10 million. Director Frederick Ehrsam III sold 2,750 shares on January 14 at $260.09. Total insider sales in the last quarter amounted to 476,920 shares valued at approximately $84.2 million.

Insiders still own 16.56% of the company, while institutional investors hold 68.84%.

COIN opened at $193.35 on Friday. Its 52-week range spans from $139.36 to $444.64. The 50-day moving average is $199.36, and the 200-day moving average is $266.20.

On the product front, Coinbase has been active. It introduced regulated crypto futures across 26 European countries and launched Agentic Wallets for AI agents. Its Chief Policy Officer also released recommendations on U.S. stablecoin regulation. Short interest in the stock has reportedly increased in March, adding another layer of bearish sentiment to the situation.