Coinbase (COIN) shares are extending gains in morning trading on Thursday after the crypto giant said it has acquired Liquifi for an undisclosed amount.  

The startup based out of San Francisco, California specializes in automating token vesting, streamlining distribution, and managing compliance workflows for crypto-related projects. 

Coinbase stock has been in a sharp uptrend over the past three months, and is currently up more than 145% versus its year-to-date low. 

Significance of Liquifi Acquisition for Coinbase Stock

The Liquifi acquisition is a positive for Coinbase since it reinforces its position as a full-stake crypto infrastructure provider. 

Integrating the Liquifi’s token vesting, distribution, and compliance tools in Coinbase Prime enables the Nasdaq-listed firm to support crypto startups from inception to public listing – dramatically growing its total addressable market. 

Moreover, the announced transaction reduces friction in token launches – a notoriously complex process plagued by legal, tax, and liquidity-related hurdles. 

All in all, Liquifi could unlock significant further upside in COIN shares as the buyout reinforces the latter’s growing dominance in regulated token services. 

What Else Could Drive COIN Shares Up

Coinbase’s buying spree underscores its utter commitment to diversifying revenue streams and deepening its presence across several verticals of the crypto market. 

Additionally, with regulatory clarity and increased blockchain adoption, COIN stock is positioned to rip higher from current levels, argued Oppenheimer analysts in their latest research note. 

Last week, the investment firm raised its price target on Coinbase shares to $395, indicating potential upside of another 11% from here. 

Oppenheimer expects continued innovation and “more partnerships between traditional finance and crypto native ventures” to prove a meaningful tailwind for the crypto stock in the second half of 2025.

Wall Street’s Mean Target Signals Downside in Coinbase

Coinbase stock has rallied in recent weeks also because the Senate passed the “GENIUS Act” – clearing the path for stablecoins to integrate more in mainstream finance. 

Still, other Wall Street firms believe much of the good news is already baked into COIN shares. 

While the consensus rating on the crypto stock remains at “Moderate Buy,” the mean target of $296 indicate potential downside of some 16% from current levels.