Brian Armstrong Says Coinbase Is Still ‘Misunderstood’

Coinbase CEO Brian Armstrong believes Wall Street still doesn’t fully grasp what his company is building.

In a recent post on X following an analyst AMA session, Armstrong argued that Coinbase is being underestimated by traditional financial analysts — even as major institutions begin warming up to crypto. According to him, the industry is facing what he called a classic “innovator’s dilemma,” where established players struggle to adapt to disruptive technology.

“Five of the GSIB banks are starting to work with Coinbase,” Armstrong wrote, noting that about half of large financial institutions are now leaning into digital assets as regulatory clarity improves. Still, others remain cautious — or outright skeptical — largely due to entrenched interests in the legacy financial system.

Armstrong compared crypto’s rise to industry shakeups sparked by companies like Uber, Airbnb and SpaceX — businesses that disrupted traditional sectors and initially faced strong resistance.

Growth Metrics Paint a Bullish Picture

Despite criticism, Coinbase’s latest Q4 and full-year results show significant growth.

Trading volume jumped 156% year-over-year, while the company’s crypto trading market share doubled in 2025. Over the past three years, assets held on the platform have tripled. Armstrong also highlighted that Coinbase now has 12 products generating more than $100 million in annualized revenue.

Other key milestones include record-high balances for USD Coin (USDC) on the platform and new all-time highs in Coinbase One subscriptions.

Armstrong emphasized that Coinbase has diversified its revenue streams over the past three years and expanded institutional engagement. Addressing earnings coverage, he clarified that GAAP net income figures include unrealized gains and losses on crypto holdings. On an adjusted basis, he said, the company remained profitable last quarter despite weaker market conditions.

Critics Push Back

Not everyone is convinced.

Some users on X questioned Armstrong’s claims, particularly pointing to his continued stock sales. One critic argued that if Coinbase is truly undervalued, the CEO should be buying shares instead of selling them.

Others raised concerns about customer security practices, product decisions, and the company’s approach to Ethereum. One user questioned why Coinbase has been selling accumulated Base sequencer fees rather than holding or staking ETH, suggesting it signals weak conviction in the ecosystem.

Another commenter asked bluntly: “Why aren’t you buying your own stock then if it is so misunderstood?”

“Early and Right”

Armstrong concluded by saying that generating alpha requires being “early and right.” In his view, Coinbase remains undervalued by traditional analysts at a time when the broader financial system is undergoing structural transformation.

Whether Wall Street fully embraces that vision may depend on how quickly legacy institutions adapt to crypto’s growing role in global finance.

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