GraniteShares 2x Short COIN Dai (CONI)

Key Updates

CONI has extended its intraday recovery, advancing a further +2.08% to $54.84 from the prior report level of $53.72, marking the third consecutive upward trigger in today's session. The instrument continues to benefit from Coinbase's deteriorating fundamental picture following its Q2 2026 earnings miss, while nascent bullish options activity in COIN introduces a near-term headwind for this leveraged short vehicle. The YTD loss narrows to -19.61%, though the 5-day gain of +22.19% underscores the strength of the current short-squeeze-driven rally in CONI.

Current Trend

CONI's short-term momentum remains firmly to the upside, driven by COIN's post-earnings weakness. Key trend observations:

• YTD: -19.61% — the instrument remains in a structural drawdown on an annual basis, consistent with COIN's partial recovery from its late-2025 lows.
• 6-month: -46.92% — reflects COIN's sharp appreciation over the prior two quarters before the Q2 earnings reversal.
• 5-day: +22.19% — the dominant near-term signal, confirming that COIN's post-earnings selloff has materially benefited CONI holders.
• 1-month: +11.96% — positive momentum extending beyond the immediate earnings reaction, suggesting sustained pressure on COIN.
• CONI has now reclaimed and extended above the previously contested $51.78–$52.05 zone, with $54.84 representing a new short-term high in the current recovery leg.

Investment Thesis

CONI is a 2x leveraged inverse ETP designed to deliver twice the inverse daily return of Coinbase (COIN). The investment thesis rests on continued fundamental deterioration at Coinbase and sustained weakness in crypto market activity. Core thesis pillars include: (1) Coinbase's third consecutive quarter of top- and bottom-line misses, with Q2 2026 EPS of -$1.36 versus -$0.17 consensus and revenue of $1.2B versus $1.3B expected; (2) a net loss of $359.5M compared to a $1.43B profit in the prior-year period; (3) declining transaction revenue amid a range-bound Bitcoin market and sustained ETF outflows; and (4) analyst estimate cuts, with William Blair reducing 2026 revenue estimates by 12% and EBITDA projections by 34%. The thesis is counterbalanced by the risk of a crypto market recovery, bullish options positioning in COIN, and the inherent daily compounding decay in leveraged inverse instruments.

Thesis Status

The investment thesis remains partially intact but increasingly contested. On the fundamental side, Coinbase's Q2 2026 results — the third consecutive miss on both revenue and EPS — provide strong ongoing support for the bearish COIN view underlying CONI's thesis. However, two developments are introducing meaningful friction: first, the emergence of bullish options activity in COIN (4:1 call-to-put ratio, $80M in call premium on July 21) signals that market participants are positioning for a COIN recovery; second, technical analysts have flagged a completed "W" double-bottom on Bitcoin's daily chart, which historically precedes trend reversals. William Blair's maintained "outperform" rating on COIN despite deep estimate cuts further complicates the near-term bearish case. The thesis is supported by fundamentals but faces growing technical and sentiment-driven headwinds.

Key Drivers

The following factors are currently driving CONI's price action:

• Q2 2026 Earnings Miss (Primary Driver): Coinbase reported EPS of -$1.36 versus -$0.17 consensus, revenue of $1.2B versus $1.3B expected, and a net loss of $359.5M compared to a $1.43B profit a year earlier — the third consecutive quarter of misses on both lines. This catalyzed COIN's 5%+ after-hours decline and remains the dominant fundamental driver for CONI. CNBC, July 30
• Transaction Revenue Softening: COIN's transaction revenue of $599M missed estimates, driven by a range-bound Bitcoin market and sustained ETF outflows — structural headwinds that may persist beyond a single quarter. CNBC, July 30
• Bullish Reversal Signals in COIN (Countervailing Risk): On July 21, COIN surged ~11% toward $178, with options flow showing 114,000 calls versus 50,000 puts and call buying outpacing puts 4:1. The $150 level has held as support multiple times since early 2024, limiting CONI's upside potential if COIN stabilizes. CNBC, July 21
• Analyst Estimate Revisions: William Blair cut 2026 revenue estimates by 12%, 2027 by 13%, and EBITDA by 34% for both years, while maintaining an "outperform" — signaling deep near-term pain but eventual recovery expectations. Piper Sandler cut its target to $155, maintaining "neutral." Decrypt, July 15
• Bitcoin Technical Recovery Signal: Glassnode data indicated long-term holder capitulation peaked and began declining, while a "W" double-bottom pattern on Bitcoin's daily chart was flagged as a potential trend change — a macro risk to the sustained bearish COIN thesis. Decrypt, July 15

Technical Analysis

CONI is trading at $54.84, having extended above the previously contested $51.78–$52.05 support/resistance zone across three consecutive intraday report triggers. Key technical observations:

• Current level: $54.84 represents the highest point in the current recovery leg, with no established resistance overhead from recent price history provided.
• Reclaimed zone: The $51.78–$52.05 level, previously broken to the downside, has now been decisively reclaimed and is acting as near-term support.
• Prior low: $50.23 (August 5) serves as the key downside reference; a return below this level would invalidate the current recovery structure.
• 5-day momentum: +22.19% — indicative of a sharp, potentially overextended short-term move that may face mean-reversion pressure if COIN stabilizes near its $150 support.
• Leverage decay risk: As a 2x daily leveraged instrument, CONI is subject to compounding decay in sideways or volatile markets, which is particularly relevant given COIN's oscillation between $150 and $178 in recent weeks.

Bull Case

• 1. Sustained Fundamental Deterioration at Coinbase: Q2 2026 marked the third consecutive quarter of misses on both EPS (-$1.36 vs. -$0.17 expected) and revenue ($1.2B vs. $1.3B), with net income swinging from +$1.43B to -$359.5M year-over-year. This trajectory supports continued COIN weakness and CONI appreciation. CNBC, July 30
• 2. Transaction Revenue Under Structural Pressure: COIN's core transaction revenue of $599M is being compressed by a range-bound Bitcoin market and sustained ETF outflows — headwinds that are not resolved by a single quarter and are likely to persist into Q3 2026. CNBC, July 30
• 3. Deep Analyst Estimate Cuts Signal Prolonged Weakness: William Blair's 34% EBITDA cut for both 2026 and 2027, combined with a projected 44% decline in total trading volume for 2026, suggests that the earnings trough is not yet reached — supporting the bearish COIN, bullish CONI thesis. Decrypt, July 15
• 4. Subscription Revenue Cannot Offset Transaction Decline: Despite subscription revenue rising to $555M as a share of the business, it still missed estimates and failed to compensate for the transaction revenue shortfall — indicating that the business mix shift is insufficient to stabilize earnings. CNBC, July 30
• 5. Piper Sandler Maintains Neutral with Reduced Target: Piper Sandler's cut of the COIN price target to $155 from $170, with a "neutral" rating, reflects limited near-term upside expectation for COIN, indirectly supporting CONI's inverse thesis. Decrypt, July 15

Bear Case

• 1. Aggressive Bullish Options Positioning in COIN: On July 21, over 114,000 calls traded against ~50,000 puts in COIN, with call buying outpacing put buying 4:1 and $80M of $100M+ in premium tied to calls. This level of directional conviction in the options market poses a direct near-term risk to CONI's inverse position. CNBC, July 21
• 2. COIN's $150 Support Has Held Repeatedly Since Early 2024: COIN rebounded sharply from below $150 on July 21, a level that has served as a durable floor multiple times. A sustained hold above this level would compress CONI's recovery potential and risk renewed drawdown. CNBC, July 21
• 3. Bitcoin Technical Recovery Signal Threatens Bearish Thesis: A completed "W" double-bottom on Bitcoin's daily chart and declining long-term holder capitulation (per Glassnode) are signals historically associated with trend reversals — a macro tailwind for COIN and headwind for CONI. Decrypt, July 15
• 4. William Blair Maintains Outperform Despite Estimate Cuts: The firm's decision to retain an "outperform" rating on COIN after cutting estimates by up to 34% signals analyst confidence in a medium-term recovery, which could attract institutional buyers into COIN and pressure CONI. Decrypt, July 15
• 5. Leveraged Instrument Decay and 6-Month Structural Underperformance: CONI's -46.92% 6-month return and -19.61% YTD loss demonstrate the severe impact of daily compounding decay inherent in 2x leveraged inverse ETPs, particularly during periods of COIN volatility and partial recovery — a structural drag that persists regardless of directional thesis. CNBC, July 21