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Patient Capital Sticks With Coinbase After Q4 Drag, Citing Shift Beyond Pure Crypto Trading

The manager calls the setback cyclical, pointing to Coinbase's expansion into adjacent products to diversify revenue.

Overview

  • Patient Opportunity Equity Strategy returned 5.99% net in Q4 2025 versus 2.65% for the S&P 500 and finished 2025 up 26.1%, marking a third straight year of outperformance.
  • The fund said Coinbase was a top detractor in Q4 as crypto-related equities fell with digital-asset prices, characterizing the weakness as cyclical rather than structural.
  • Its thesis holds that Coinbase is evolving into a broader exchange with initiatives such as the Base layer-2 network, equity and ETF trading, stablecoins, and prediction markets.
  • Coinbase closed at $208.93 on March 4, 2026, with a one-month gain of 42.99%, a 52-week change of −2.45%, and a market capitalization of about $56.34 billion.
  • Insider Monkey data show hedge-fund portfolios holding Coinbase fell to 64 from 73 quarter over quarter, as the letter also noted a 2025 market dominated by AI leaders and concentrated S&P 500 returns.