Bitcoin Depot vs. Coinbase: Which Stock Will Ride Next Crypto Wave?
Explore how Bitcoin Depot’s kiosk-driven growth stacks against Coinbase’s diversified crypto services, revealing fresh insights on which stock offers the best ride on the next cryptocurrency momentum.
Key Takeaways
- Bitcoin Depot’s kiosks drive nearly all its revenue, with 8,978 units across three countries.
- Coinbase’s stablecoin USDC accounts for 46.5% of its subscription and services revenue.
- BTM stock surged 137% YTD, far outpacing Coinbase’s 24.4%, trading at a much lower forward P/E of 8.82X.
- Coinbase’s earnings are projected to decline in 2025 and 2026, while Bitcoin Depot expects strong growth.
- Both stocks hold a Zacks Rank #3 (Hold), reflecting balanced risk and opportunity.
The cryptocurrency market continues to captivate investors with its promise and volatility. Two standout stocks, Bitcoin Depot (BTM) and Coinbase (COIN), offer contrasting windows into this dynamic space. Bitcoin Depot thrives on its vast network of nearly 9,000 Bitcoin ATM kiosks and innovative BDCheckout service, focusing on cash-to-crypto transactions. Meanwhile, Coinbase commands a diversified portfolio, including trading, staking, and a strong stablecoin presence through USDC.
In 2025, Bitcoin Depot’s stock has soared by 137%, dwarfing Coinbase’s 24.4% gain, while trading at a significantly lower forward price-to-earnings ratio. But numbers alone don’t tell the full story. This article dives into their business models, growth drivers, and financial health to uncover which stock might best ride the next crypto wave. Whether you’re a seasoned investor or crypto-curious, understanding these players’ strategies offers fresh perspectives beyond the hype.
Comparing Business Models
Bitcoin Depot and Coinbase operate in the same crypto ocean but sail very different ships. Bitcoin Depot’s strength lies in its physical footprint—nearly 9,000 Bitcoin ATM kiosks spread across the U.S., Canada, and Australia. These kiosks handle cash-to-Bitcoin transactions, making crypto accessible to those who prefer or rely on cash. The median transaction size hovers around $300, showing steady retail engagement.
In 2022, Bitcoin Depot launched BDCheckout, a clever twist allowing customers to load cash at checkout counters in over 7,000 retail locations. This innovation sidesteps the hefty costs of installing kiosks and monthly rents, expanding reach without heavy upfront investments. It’s a smart play in a fragmented market where cash remains king.
Coinbase, by contrast, is a digital-first powerhouse. It offers a broad suite of services: from simple and advanced trading to institutional brokerage and custody. Its revenue streams are more diversified, including trading fees, staking rewards, and subscription services. Notably, Coinbase’s stablecoin USDC, launched in partnership with Circle, accounts for nearly half of its subscription and services revenue, reflecting a strategic bet on stable, regulated crypto assets.
While Bitcoin Depot’s model is anchored in physical access and cash transactions, Coinbase rides the digital wave with a global platform and institutional focus. Both approaches have merits, but they cater to different segments of the crypto universe.
Analyzing Financial Performance
Numbers tell a compelling tale in the Bitcoin Depot versus Coinbase saga. Bitcoin Depot’s stock has surged an eye-popping 137% year-to-date in 2025, vastly outperforming Coinbase’s 24.4% gain. This explosive growth reflects investor enthusiasm for Bitcoin Depot’s expanding kiosk network and innovative BDCheckout service.
Valuation paints an even starker contrast. Bitcoin Depot trades at a forward price-to-earnings ratio of 8.82X, signaling a bargain compared to Coinbase’s lofty 50.05X. This suggests the market views Coinbase as a premium stock, pricing in future growth that hasn’t yet materialized.
However, Bitcoin Depot’s return on equity (ROE) is negative 44.12%, indicating challenges in efficiently using shareholder funds to generate profits. Coinbase’s ROE stands at a healthier 16.02%, showing better profitability management.
Earnings projections deepen the divide. Bitcoin Depot expects a 170% jump in earnings in 2025, followed by a 5.6% rise in 2026. Coinbase, conversely, faces projected earnings declines of 7.8% in 2025 and 18.2% in 2026, despite modest revenue growth. This paints Bitcoin Depot as the high-growth, high-volatility option, while Coinbase offers steadier but pressured profitability.
Investors must weigh these financial realities against their risk appetite and investment horizon.
Exploring Growth Drivers
What fuels Bitcoin Depot’s rocket-like ascent? Its leadership in physical crypto access is a major driver. With nearly 9,000 kiosks and BDCheckout’s presence in over 7,000 retail locations, Bitcoin Depot taps into a vast, cash-reliant customer base often overlooked by digital-only platforms. The company’s strategy to expand kiosks through partnerships with convenience stores like CEFCO and EG America promises to boost transaction volumes and revenues.
Additionally, Bitcoin Depot’s acquisition of Pelicoin’s assets strengthens its foothold in the Gulf South region, signaling targeted regional growth. Holding over 100 Bitcoins in its treasury also shows confidence in Bitcoin’s long-term value.
Coinbase’s growth engine is more diversified. Its stablecoin USDC, accounting for 46.5% of subscription and services revenue, benefits from regulatory clarity under the GENIUS Act, which shields stablecoins from being classified as securities. This regulatory tailwind supports Coinbase’s stablecoin expansion.
Further, Coinbase’s acquisitions—like Sentillia B.V. for crypto derivatives and One River Digital Asset Management—expand its global reach and product offerings. Its institutional services and staking options cater to a broad client base, from retail to institutional investors.
Both companies leverage unique growth levers, with Bitcoin Depot focusing on physical infrastructure and Coinbase on digital ecosystem expansion.
Assessing Risks and Challenges
No crypto journey is without turbulence. Bitcoin Depot’s rapid expansion comes with high operating leverage—fixed costs for kiosks and infrastructure mean downturns could hit hard. Regulatory uncertainties and geopolitical factors, like trade tariffs, add layers of risk that could dampen consumer confidence or increase costs.
Moreover, Bitcoin Depot’s growth is largely U.S.-centric, with limited international diversification compared to Coinbase’s global digital platform. This geographic concentration could limit upside or expose the company to regional regulatory shifts.
Coinbase faces its own hurdles. Projected earnings declines in 2025 and 2026 raise red flags about near-term profitability. The company operates in a regulatory landscape that varies globally, creating compliance challenges and potential service restrictions.
Competition is fierce, with decentralized exchanges and fintech startups nipping at Coinbase’s heels. Its premium valuation also means investors expect a turnaround, adding pressure to deliver.
Both stocks carry balanced risk profiles, reflected in their Zacks Rank #3 (Hold) status, underscoring the need for cautious optimism.
Making the Investment Choice
So, which stock rides the next crypto wave better? Bitcoin Depot’s recent performance and attractive valuation suggest it offers greater upside potential, especially for investors betting on physical crypto access and retail cash transactions. Its strong revenue and earnings growth forecasts reinforce this appeal.
Coinbase, with its diversified services and global footprint, remains a cornerstone in the crypto ecosystem. Its stablecoin focus aligns with regulatory trends, and strategic acquisitions bolster its long-term positioning. However, projected earnings declines and a high valuation temper enthusiasm.
Investors should consider their risk tolerance and investment horizon. Bitcoin Depot’s growth story is compelling but comes with operational and regulatory risks. Coinbase offers a more established, diversified play but faces profitability headwinds.
Ultimately, blending exposure to both could balance growth and stability in a crypto portfolio. Staying vigilant about regulatory developments and market shifts will be essential as these companies navigate the evolving crypto landscape.
Long Story Short
Choosing between Bitcoin Depot and Coinbase isn’t just about chasing the highest returns—it’s about aligning with distinct crypto journeys. Bitcoin Depot’s rapid kiosk expansion and BDCheckout innovation fuel strong revenue and earnings growth, backed by a compelling valuation that appeals to value-focused investors. Its physical infrastructure taps into a cash-driven economy, offering a tangible edge in crypto accessibility. Coinbase, on the other hand, remains a heavyweight with a broad digital asset ecosystem and regulatory tailwinds supporting its stablecoin focus. Yet, projected earnings declines and a lofty valuation signal caution. The relief of a diversified revenue stream is tempered by near-term profit headwinds. For investors ready to surf the next crypto wave, Bitcoin Depot’s momentum and growth prospects shine brightly, while Coinbase’s established platform offers a steadier, albeit riskier, long-term play. As always, staying alert to regulatory shifts and market tides will be key to navigating these exciting but unpredictable waters.