![]() Coinbase also makes some revenue from subscriptions and services like custody.Ĭoinbase has enjoyed significant revenue growth since 2019, going from $533.735 million to nearly $8 billion in 2021. Every time you make a transaction, Coinbase takes a small fee, much like a stockbroker or a payment processor. How Does Coinbase Make Money?Īs we can see in this extract from Coinbase's annual report, around 90% of revenues come from transaction revenues, and in turn, most of this comes from retail. The company could stand to profit from the staking of Ethereum. In the last few weeks, COIN has rallied strongly as we approach the Ethereum ( ETH-USD) merge, which many see as positive news for Coinbase. Needless to say, this is huge for Coinbase. While these headlines put a dampener on Coinbase's price, the stock rallied on news that it was partnering with BlackRock to provide institutional investors access to crypto. Allegedly, different wallets were used to purchase tokens before public listings in Coinbase. On top of that, a former Coinbase manager has been accused of insider trading. Of course, this debate spills into that of what cryptocurrency is. On the unfortunate news side, Coinbase was accused by the SEC of trading unregistered securities. However, we have seen a significant rally in the past month, with Coinbase making headlines for good and bad reasons. At its lowest, COIN was trading at just over $40. This was at the height of stock market valuations, and Coinbase shares began trading at $250, with a valuation of $86 billion.Īs we can see in the chart above, Coinbase traded as high as $360 in November but has since fallen considerably together with most Nasdaq stocks. It was founded in 2012 by Brian Armstrong, and it started trading publicly on the Nasdaq in April 2021. Quick OverviewĬoinbase is one of the largest exchanges in the world. ![]() Even with the regulatory uncertainty surrounding crypto, I am bullish on COIN and calculate its fair value of at least $260. Looking at analyst forecasts, it seems clear that Coinbase is undervalued, which is why I expect it to rally strongly, especially as we enter a new crypto bull market. ( NASDAQ: NASDAQ: NASDAQ: COIN) has recently rallied strongly, following positive news and a strong Bitcoin ( BTC-USD) recovery. Gguy44/iStock via Getty Images Thesis SummaryĬoinbase Global, Inc.
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