Coinbase stock faces near-term headwinds as crypto markets cool, but CEO Brian Armstrong is positioning the company for long-term growth through artificial intelligence integration. Armstrong argues that AI agents will increasingly need blockchain technology and stablecoins to conduct autonomous transactions, potentially transforming Coinbase from a cyclical crypto exchange into essential infrastructure for programmable finance.
According to recent company disclosures, Coinbase reported $7.2 billion in total fiscal 2025 revenue with $2.8 billion in adjusted EBITDA. However, the company posted $667 million in GAAP losses during Q4, highlighting ongoing profitability challenges despite growing revenue streams.
AI Agents Drive Stablecoin Revenue Growth
Armstrong’s thesis centers on a fundamental limitation of artificial intelligence: AI agents cannot open bank accounts, pass Know Your Customer checks, sign legal agreements, or use credit cards. However, these autonomous systems increasingly need to transact with each other in real time. Stablecoins offer a solution by functioning as neutral, programmable settlement assets that AI agents can use natively without traditional banking infrastructure.
The argument has gained traction beyond the cryptocurrency ecosystem. Sequoia Capital partner Shaun Maguire described AI and crypto as “siamese twins” that were always likely to reconnect, according to recent industry commentary. Meanwhile, major payment processors are building similar systems, with Mastercard launching Agent Pay and Visa developing Intelligent Commerce.
Infrastructure Development Accelerates
Coinbase has already deployed technology to support this vision. The company launched Agentic Wallets on its Base Layer 2 network, featuring gasless transactions, programmable spending limits, and private keys stored in secure enclaves that are never exposed to underlying language models. Additionally, the x402 protocol embeds stablecoin payments directly into HTTP requests, having already processed over 50 million machine-to-machine transactions.
This infrastructure is gaining adoption outside crypto-native applications. Google has incorporated x402 into its AP2 agent payments protocol, while Visa, PayPal, and American Express are developing similar systems. Stripe CEO Patrick Collison called stablecoins “room-temperature superconductors for financial services” last year, signaling broader industry interest.
Coinbase Stock Valuation Concerns Persist
Despite the long-term potential, Coinbase stock trades at 47.5 times forward earnings, reflecting significant premium valuations amid ongoing losses. The company’s stablecoin revenue hit $1.35 billion in 2025, up 48% year-over-year, representing what Armstrong considers the most defensible revenue stream. However, overall revenue fell short of expectations as both Bitcoin and Ethereum have declined in recent months.
The fundamental challenge remains volatility tied to cryptocurrency prices and speculative retail sentiment. Unlike traditional growth stocks that offer predictable quarterly results, Coinbase financials depend entirely on crypto trading volumes, which remain highly unpredictable. Investors have become increasingly selective, requiring both AI and crypto companies to justify their valuations with concrete results.
Everything Exchange Vision Takes Shape
Armstrong’s longer-term strategy involves transforming Coinbase into an “everything exchange” integrating digital assets, equities, commodities, and prediction markets into a single on-chain venue. This positioning reframes the company less as a cyclical crypto business and more as infrastructure for programmable finance. However, this vision may take years to materialize while quarterly results continue swinging with cryptocurrency sentiment.
Market observers note that bots already constitute a significant volume of crypto market activity, suggesting the AI-crypto convergence is already underway. Nevertheless, the lack of an altcoin season on the horizon points to continued near-term pressure on trading volumes and transaction-based revenue.
The company has not announced specific timelines for expanding beyond cryptocurrency trading or achieving consistent profitability. Investors await further clarity on how quickly the AI agent infrastructure will generate meaningful revenue to offset the volatility of traditional crypto exchange operations.
