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Annual Meeting of Stockholders 2024
June 14, 2024 10:00 AM PT
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ANNUAL REPORT
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https://investor.coinbase.com/events-and-presentations/events/event-details/2024/Annual-Meeting-of-Stockholders-2024-2024-PORhxaZ389/default.aspx
THE BLOCK article May 10,2024: Franklin Templeton claims Coinbase-incubated Ethereum Layer 2 Base has 'hit a homerun' in SocialFi by James Hunt
"The combination of Base-based applications and direct integration with Coinbase’s users means the network is well positioned to capture a “material share” of SocialFi activity and remain a leader in the Ethereum Layer 2 sector, Franklin Templeton added."
"Base currently dominates its rivals in terms of revenue and transactions, according to The Block’s data dashboard. Base generated more than 60% ($355,000) of total Layer 2 revenue ($583,000) on Thursday."
"Built on Optimism’s OP Stack, Base’s 2.5 million seven-day moving average daily transaction count is nearly five times higher than Optimism itself and one million more than the other main optimistic rollup, Arbitrum, as of yesterday."
https://www.theblock.co/post/293713/coinbase-ethereum-layer-2-base-socialfi-franklin-templeton
COINTELEGRAPH article dated 5/9/2024: Coinbase sees infinite interoperability potential with Ethereum and USDC by Derek Andersen
Coinbase is preparing for a future of a billion customers using decentralized applications on millions of blockchains safely and securely in a system integrating the Ethereum Virtual Machine (EVM) and Circle’s USD Coin.
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Coinbase head of tokenization Anthony Bassili, speaking at TokenizeThis 2024 in Miami, said Coinbase’s Ethereum layer-2 Base blockchain will save time on Know Your Customer (KYC) and Anti-Money Laundering (AML) with identity attestation through the Ethereum Attestation service and Coinbase verification, which creates a tag on the user’s so-called smart wallet.
https://cointelegraph.com/news/coinbase-base-blockchain-evm-usdc-ethereum-integration
The Motley Fool Article 5/9/2024: Better Crypto Stock: Coinbase Global vs. MicroStrategy by Leo Sun
The obvious winner: Coinbase
" Coinbase will remain a linchpin and bellwether of the growing cryptocurrency market, while MicroStrategy is simply a slow-growth software company that is betting the farm on Bitcoin. Coinbase is also growing faster and trades at lower valuations than MicroStrategy. Both stocks might continue to rise as the crypto market recovers, but Coinbase is clearly a more promising long-term investment than MicroStrategy right now."
https://www.fool.com/investing/2024/05/09/better-crypto-stock-coinbase-global-microstrategy/
Looks like I was 24 hrs. too soon. Holding LONG. GLTA!
Article: Coinbase benefitting from hostile regulatory environment: Bitwise by RT Watson, May 6,2024
" In the wake of the Securities and Exchange Commission issuing Robinhood Crypto a Wells Notice, Bitwise CIO Matt Hougan took to X to argue that a "hostile regulatory environment" is benefitting Coinbase, the top cryptocurrency exchange in the U.S.'The hostile regulatory environment is creating an artificial 'moat' for Coinbase's business, helping sustain extremely high margins and allowing them to over-earn in the short-term,' Hougan said in a post."
"Hougan also argued that Coinbase's ability earn solid returns in turn helping them to raise money and further their business interests.'What's impressive is that they are using this opportunity to both raise cash (now $7.1 billion) and massively diversified their business (see the growth in USDC, Base, int'l futures)' he said."
https://www.theblock.co/post/292657/coinbase-benefitting-from-hostile-regulatory-environment-bitwise
Finished filling my COIN position today. Decided not to wait for another pull back. Too much going on in the crypto sector. GLTA!
Using Business Wire for press releases is the cheapest way to issue a press release and is usually only used by small companies with budget concerns.
Bitcoin Surges Post Jobs Report, Coinbase Reveals $1.2 Billion 1Q Net Profit, and More Crypto News
May 03 2024 - 3:26PM
IH Market News
Coinbase registers robust profit in first quarter and analyzes Bitcoin pullback in global market context
In the first quarter, Coinbase Global (NASDAQ:COIN) performed exceptionally well, benefiting from favorable market conditions and diversification of its business. The cryptocurrency trading company reported a net profit of $1.2 billion and earnings per share of $4.40, including a $650 million mark-to-market gain on cryptographic assets. Analysts such as Canaccord Genuity and KBW adjusted their price forecasts to reflect the growing international opportunity and the introduction of new products such as the Coinbase Prime wallet and the Layer 2 blockchain, Base.
In a recent report, Coinbase highlighted that the decline in Bitcoin price (COIN:BTCUSD) in April, which saw the cryptocurrency depreciate by 16%, reflects a broader trend not limited to the cryptocurrency sector. According to the analysis, this movement mirrors declines also observed in stocks and gold amid a strengthening dollar. Analysts David Han and David Duong emphasize that Bitcoin’s maximum drawdown of 23% since the peak is below historical declines, suggesting a reduction in price fluctuations and a sign of greater stability and legitimization of Bitcoin as a global macroeconomic asset.
Bitcoin rises in response to jobs data
Bitcoin (COIN:BTCUSD) experiences a 4.5% increase on May 3, driven by US employment data. BTC/USD is trading at $61,751 at the time of writing. Specifically, non-farm payrolls numbers for April fell below expectations, indicating weakness in the job market. This revelation suggests a possible interest rate cut, as hinted by Federal Reserve Chairman Jerome Powell during a press conference. Powell indicated a cautious stance on interest rates amid labor market weakness. This outlook was well received by investors, leading to an increase in Bitcoin price.
Furthermore, Fernando Pereira, an analyst at Bitget, in his technical analysis of BTC for May, highlighted that Bitcoin is currently testing significant support around $60,000. “BTC is testing very strong support at $60,000, which should hold the price for a while, but when we look at the long short ratio and see that 75% of the market has open long futures contracts, this is a very strong indicator that all these contracts must turn into liquidity for the price to break this support and go after lower targets, like $54,800 in the short term and $52,000 in the medium term,” commented Pereira.
Today is the expiration day for cryptocurrency options, with an expected settlement of $1.39 billion in Bitcoin options and $1 billion in Ethereum options. Approximately 23,367 Bitcoin contracts, worth $1.39 billion, are set to expire, with a maximum pain point at $61,000. Meanwhile, about 334,248 Ethereum contracts, with a notional value of approximately $1 billion, are also expiring today.
Market leaders and laggards of the week
In the past week, four cryptocurrencies stood out, with Polkadot (COIN:DOTUSD) and Cosmos (COIN:ATOMUSD), both multi-chain protocols, rising by 5.83% and 6.90%, respectively. In contrast, three assets, including NEAR (COIN:NEARUSD), Dogecoin (COIN:DOGEUSD), and Bitcoin Cash (COIN:BCHUSD), experienced declines of -5.73%, -7.57%, and -6.24% over the last 7 days, respectively.
Movement of funds in Bitcoin ETFs on the last day
On May 2, Bitcoin ETFs recorded a total outflow of $34.4 million, with the Grayscale ETF (AMEX:GBTC) being the only one to incur losses. This outflow contrasts with the previous day, when all ETFs experienced reductions. Specifically, the GBTC saw an outflow of $54.9 million, holding 291,248 Bitcoins. Notably, BlackRock (NASDAQ:IBIT), Fidelity (AMEX:FBTC), and Bitwise (AMEX:BITB) ETFs saw no inflows or outflows. However, the Ark ETF (AMEX:ARKB) witnessed a significant inflow of $13.3 million, the largest since April 23.
BNP Paribas invests in BlackRock’s Bitcoin ETF
BNP Paribas, one of Europe’s largest banks, has started purchasing shares of BlackRock’s iShares Bitcoin Trust (NASDAQ:IBIT), marking its entry into the Bitcoin market through an ETF. According to its recent 13F form, the bank acquired 1,030 shares of IBIT, valued at $41,684, representing a small portion of its total investments, totaling $113.8 billion.
CleanSpark reports notable increase in Bitcoin mining after halving
CleanSpark (NASDAQ:CLSK), a prominent Bitcoin miner (COIN:BTCUSD), reported significant production in its first post-halving monthly update, achieving a hashrate of 17 EH/s and mining 721 BTC. With the deployment of advanced S21 machines and expansion of facilities, the company optimized efficiency and reduced costs. CEO Zach Bradford highlighted an increase in transaction fees that boosted production, also anticipating a possible correction in Bitcoin price due to the exit of less efficient miners.
Stronghold Digital Mining explores sale among other strategies to maximize shareholder value
Stronghold Digital Mining (NASDAQ:SDIG) announced that it is evaluating strategies such as selling the company or other strategic transactions to increase value for shareholders. After disclosing solid financial and operational results for the first quarter on May 2, the company, with support from Cohen and Company Capital Markets and advisory from Vinson & Elkins LLP, is exploring various options without a defined deadline for completion. In the first quarter of 2024, Stronghold Digital Mining reported revenue of $27.5 million, representing a 27% sequential increase and a 59% year-over-year increase. Of these, $26.7 million came from cryptographic operations. The company also recorded a GAAP net profit of $5.8 million and a non-GAAP adjusted EBITDA of $8.7 million.
Block initiates monthly Bitcoin purchase program to increase reserves
Payment company Block (NYSE:SQ), under the leadership of Jack Dorsey, has launched a program to allocate 10% of its monthly gross profit from bitcoin operations to the purchase of more bitcoins. The initiative began in April and is scheduled to continue until the end of 2024. With a bitcoin gross profit of bitcoin of $80 million in the first quarter, Block can add approximately $24 million in bitcoin to its balance annually. The company already holds a significant amount of bitcoin (COIN:BTCUSD), valued at around $4.7 billion.
Michael Saylor defends bitcoin as the best corporate hedge against inflation and predicts Ethereum’s classification as a security by the SEC
During the MicroStrategy World: Bitcoin for Corporations event, Michael Saylor, CEO of MicroStrategy (NASDAQ:MSTR), highlighted bitcoin’s superiority in strengthening corporate balance sheets in an inflationary environment. He argued that bitcoin (COIN:BTCUSD) is the only asset that outperforms the cost of capital, considering all other assets as dilutive. Saylor also discussed the inadequacy of investments such as gold, silver, and government bonds in keeping up with the cost of capital, highlighting the performance of the S&P 500 as a reflection of monetary expansion and inflation.
Additionally, Saylor predicts that the SEC will classify Ethereum (COIN:ETHUSD) and other major cryptocurrencies as securities, denying spot ETF requests from managers like BlackRock (NYSE:BLK). During his presentation at the conference, he expressed that unlike other cryptocurrencies such as BNB (COIN:BNBUSD), Solana (COIN:SOLUSD), Ripple (COIN:XRPUSD), and Cardano (COIN:ADAUSD), only Bitcoin has complete institutional acceptance, described by him as the only universally institutional-grade cryptographic asset.
Increase in venture capital investments in cryptocurrency startups in 1Q24
After three consecutive quarters of decline, the cryptocurrency and blockchain sector saw a notable increase in venture capital investment in early 2024. A report by Galaxy Research revealed that $2.49 billion was invested in 603 transactions in the first quarter, a 29% growth in funding volume and a 68% increase in the number of deals compared to the previous quarter. This improvement may indicate a recovery, but continuous increases in the coming quarters will be needed to confirm a sustained upward trend. Various factors, such as new innovations in blockchain technologies and macroeconomic conditions, influenced this dynamic. Nevertheless, total investment remains below levels seen at previous Bitcoin peaks.
Loss of $70.5 million in Bitcoin due to address poisoning scam
Cyvers Alert, a blockchain security company, reported the loss of 1,155 Wrapped Bitcoin (COIN:WBTCUSD), equivalent to $70.5 million, by a cryptocurrency trader due to an address poisoning attack. According to Meir Dolev, founder and CTO of Cyvers, this incident is one of the largest values ever lost in such a scheme. Address poisoning occurs when criminals create fake addresses similar to legitimate ones to deceive victims, leading them to transfer cryptocurrencies to fraudulent addresses.
Significant expansion of the Polkadot ecosystem in the Q1
According to a report by Messari, the Polkadot ecosystem (COIN:DOTUSD) saw a significant increase in its key metrics in the first quarter of the year. The market capitalization of the native DOT token rose from $8.4 billion at the end of 2023 to $12.7 billion, accompanied by a 270% jump in the price of DOT, reaching a peak of $11.3. The number of daily active addresses reached a record of 514,000, a 48% increase from the previous quarter. Moonbeam (COIN:GLMRUSD) remains the largest parachain, while Manta Network saw the largest growth in active addresses, driving Total Value Locked (TVL) to over $440 million. The network also experienced significant advances in the utilization of its Cross-Chain Message (XCM) format, demonstrating the ecosystem’s continued dynamism.
MoonPay adds PayPal support for cryptocurrency purchases in the US
MoonPay (COIN:GLMRUSD), a cryptocurrency payment platform, announced that it now allows users in the United States to buy and sell over 110 types of cryptocurrencies using PayPal (NASDAQ:PYPL). The integration, recently revealed, facilitates transactions for MoonPay users who are already familiar with PayPal for online purchases. This partnership also enhances transaction security, as PayPal does not share complete financial details during the process.
Paolo Ardoino proposes development of “Pear Phone” focusing on privacy
Paolo Ardoino, CEO of Tether and co-founder of Holepunch, revealed plans for a possible “Pear Phone.” This device, based on the Android Open Source Project (AOSP), would come equipped with Holepunch apps, such as Keet for encrypted messaging, along with other apps built on the Pear Runtime P2P protocol and the Bitkit Bitcoin wallet. Ardoino suggests that the phone will not have Google apps and will feature a peer-to-peer app store, aligning with Holepunch’s mission to promote P2P apps that ensure user privacy and reduce reliance on major tech companies.
ZTX introduces native token payment for beauty and regenerative treatments
The ZTX metaverse platform, in partnership with Frontier, a leading Japanese regenerative medicine company, announced that its native token ZTX (COIN:ZTXUST) will be accepted as a form of payment for cosmetics and treatments with stem cells and exosomes. Frontier offers exosome therapy in various clinics throughout Japan, covering everything from disease treatments to aesthetic procedures. The partnership allows patients to pay for treatments with ZTX tokens, including discounts for early payments.
EigenLayer increases token distribution after community feedback
The Ethereum reset protocol, EigenLayer, announced additional distribution of about 28 million of its EIGEN tokens to over 280,000 wallets. This decision follows criticisms of restrictions in the initial airdrop program. The Eigen Foundation stated that it will include in the distribution users who interacted with the protocol before April 29, also encompassing early participants. The distribution of EIGEN tokens, which are not yet on the market but are traded in futures contracts at $10 each, represents an estimated value of around $280 million. The official token delivery is scheduled to begin on May 10.
Former FTX co-CEO relinquishes Bahamas mansion
The ongoing fallout from the FTX collapse now involves a luxurious mansion in the Bahamas and a legal agreement. Ryan Salame, former co-CEO of FTX Digital Markets, a part of the now defunct exchange, has agreed to surrender his luxury residence on the island as part of a settlement in a criminal case. This agreement comes in a context where only he has suffered significant exits, contrasting with the company’s bankruptcy, which at its peak was valued at $32 billion. The scandal highlighted serious management failures and misuse of client funds, triggering a crisis of confidence in the cryptocurrency market.
Nigeria hosts roundtable for consensus on cryptocurrency regulation
The Nigerian Blockchain Industry Coordinating Committee (BICCoN) is organizing a meeting on May 6, involving the new director-general of the Nigerian Securities and Exchange Commission (SEC) and several cryptocurrency exchanges. BICCoN president Lucky Uwakwe announced that the virtual conference aims to align all stakeholders, from exchange operators to blockchain associations, to discuss and shape future cryptocurrency regulations in the country.
https://ih.advfn.com/stock-market/NASDAQ/coinbase-global-COIN/stock-news/93778173/bitcoin-surges-post-jobs-report-coinbase-reveals
Ready to top off my COIN holdings with the next dip and then sit back and watch. GLTA!
COINTELEGRAPH Article by Amaka Nwaokocha: " Coinbase faces new lawsuit over alleged investor deception."
" Coinbase crypto exchange and its CEO, Brian Armstrong, face a new class-action lawsuit alleging investors were deceived into buying securities and claims the company’s business model is illegal."
" This new lawsuit is distinct from Coinbase’s highly publicized legal battle with the U.S. Securities and Exchange Commission, which also questions whether tokens sold on Coinbase should be classified as securities. Coinbase has recently filed an interlocutory appeal in response to a judge’s decision allowing the case to proceed."
https://cointelegraph.com/news/coinbase-faces-new-lawsuit-over-alleged-investor-deception
I wouldn't add to a company with no insurance for deposits or a physical call center. Might just as well bet sports....try getting your money out there first. It's a pyramid deal if you can't short it on their platform.
A Very Good Read: COINTELEGRAPH Article by Violeta Todorova dated 5/3/2024 Coinbase's Base could make it the NVIDIA of DeFia
" Since the upgrade, Base has consistently processed more than 3 million transactions daily, substantially lifting its fee revenue. If this pace is sustained, Base could become a big growth driver for Coinbase. Since the Dencun upgrade, the fees that Base has earned have surpassed the other major Ethereum scaling networks."
" Coinbase is the custodian for eight of the 11 new Bitcoin ETFs launched on Jan. 10. These ETFs have reached close to $60 billion in assets under management in the first quarter of 2024. Coinbase charges a fee for assets under custody, which are a few basis-points on the assets under custody."
"As the assets under management in these ETFs increase, Coinbase custodian fees would rise too. Coinbase custodian fee revenue was $19.7 million in Q4’23. After the launch of the Bitcoin ETFs in mid-January, Coinbase revenue from custody fees rose 90% to $32.3 million."
"Overall, there is still huge potential for cryptos to grow thanks to the United States' 11 Bitcoin ETFs. Likewise, six Bitcoin and Ethereum ETFs launched in Hong Kong in April, and the Australian Securities Exchange may also approve its first Bitcoin ETFs before 2025.
These factors are likely to offer consistent support for crypto in the long run, which will be beneficial for Coinbase transaction and non-transaction revenue. While declining crypto prices are likely to weigh on Coinbase’s share price in the short-term, Coinbase’s diversification of revenue drivers is likely to lead to higher share prices in the long-term."
https://cointelegraph.com/news/coinbase-base-could-become-nvidia-defi
First Quarter 2024 Earnings Call
May 2, 2024 5:30 PM ET
https://investor.coinbase.com/events-and-presentations/events/event-details/2024/First-Quarter-2024-Earnings-Call/default.aspx
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10-Q
ZACKS 5/01/2024 Article; Should You Add Coinbase ( COIN ) to Your Portfolio Before Q1 Earnings?
" COIN is set to report first-quarter 2024 earnings on May 2, after market close. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at 89 cents on revenues of $1.2 billion. The top- and bottom-line estimates imply year-over-year improvements of 493.3% and 55.5%, respectively."
"Per our proven model, stocks with a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) are likely to beat on earnings. At present, Coinbase has an Earnings ESP of +36.53% and a Zacks Rank of 1. Hence, it is presumed that Coinbase is likely to beat estimates this earnings season."
https://www.zacks.com/stock/news/2266338/should-you-add-coinbase-coin-to-your-kitty-before-q1-earnings
Aint nobody holding down shiiit. The market is the market. Ur a fool if u think coin is worth 300 at the moment. Lmao
This should be over 300 they are holding it down, getcready
Benzinga article by Caden Pok 5/01/2024
Who Holds The Most Ethereum (ETH)? How Coinbase, Grayscale, Robinhood And Binance Stack Up
" Coinbase, one of the largest crypto companies in the world, operates a centralized exchange, wallet service and a layer-2 called Base. Coinbase's portfolio is worth nearly $80 billion. The wallet is composed almost entirely of Ethereum (ETH) and Bitcoin (BTC). The firm holds over 900,000 BTC, currently worth over $55 billion. It also holds over 6.6 million ETH worth roughly $20 billion."
" Coinbase has the largest ETH holding on the list. Its $20 billion of ETH is more than 5% of the total supply. The four firms hold a combined 15.5 million ETH, which is roughly 12.7% of the supply."
https://finance.yahoo.com/news/holds-most-ethereum-eth-coinbase-163811131.html
Today's FORBES DIGITAL ASSETS Article by Javier Bastardo, Contributor,
" Coinbase, the largest crypto exchange in the United States, just added support to the Lightning Network, a payments and routing solution that makes transacting in bitcoin cheaper and faster. Despite being around since 2017, Coinbase took the time to add this improvement to its platform. The new technology addition is powered by Lightspark, a Lightning Network company founded by David Marcus.
"https://www.forbes.com/sites/digital-assets/2024/04/30/coinbase-now-offers-cheaper-and-faster-bitcoin-via-lightning-network/?sh=2568140f3790
$COIN $50.00 coming. The whole Bitcoin market is falling because the anticipated Asia's first spot bitcoin and ether ETFs ---- > debuted in Hong Kong with dismal trading volumes.
Today's ZACKS article:
" Wall Street analysts expect Coinbase Global, Inc. (COIN) to post quarterly earnings of $0.89 per share in its upcoming report, which indicates a year-over-year increase of 493.3%. Revenues are expected to be $1.2 billion, up 55.5% from the year-ago quarter."
" Shares of Coinbase Global have experienced a change of -10.9% in the past month compared to the -2% move of the Zacks S&P 500 composite. With a Zacks Rank #1 (Strong Buy), COIN is expected to outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy)"
https://finance.yahoo.com/news/curious-coinbase-global-coin-q1-131601953.html
You are very welcome!
Thank you for that posting.
Coinbase article on Investors business daily
HARRISON MILLER 08:00 AM ET 04/26/2024
It's been a historic year for bitcoin, and Coinbase Global (COIN) has been a key player in it. As a result, Coinbase stock has leapt nearly 25% thus far this year.
Cryptocurrency prices and related stocks are running hot after the launch of spot bitcoin exchange traded funds in January. That sparked renewed interest in digital assets and propelled bitcoin to a record high in mid-March.
Some of that rally appears to have cooled in the wake of bitcoin's recent halving event, which cut the amount of rewards doled out to cryptocurrency miners by 50%. Still, analysts are bullish on the near-term prospects for Coinbase, with first-quarter results due next week.
How The Halving Event Affected Bitcoin
Bitcoin is trading around $63,000, about 14% below its all-time high of $73,798 from March 14. But it's still up 50% in 2024. Its price is essentially flat after bitcoin's fourth halving event, held April 19,
The halving events occur after every 210,000 bitcoins are mined. The idea is to help control the rate at which new bitcoins are created, which takes roughly four years. The total supply is capped at a maximum of 21 million bitcoins.
During the last three halvings, bitcoin averaged a 3,108% price increase in the 12 months following the event, Cathie Wood's ARK Invest (ARKK) noted in a recent email to investors.
After the April 19 event, bitcoin's supply growth fell to an annual rate of about 0.9% from 1.8%. That's below the supply growth of gold on a long-term basis, which was estimated at a 1.7% clip in 2023, according to ARK Invest.
A Divergence Of Opinion
However, analysts are conflicted about the impact this halving will have on bitcoin's price. Some predict the supply shock will propel bitcoin higher. Others believe the market has already priced in this year's halving.
And where bitcoin goes, other cryptos tend to follow. Bitcoin's market cap of $1.26 trillion represents half of the total global cryptocurrency market cap. Its performance can heavily influence other cryptocurrencies and related stocks.
Bitcoin is vital to exchanges like Coinbase as it represented 34% of its total trading volume in fiscal 2023 and 35% of transaction revenue.
Goldman Sachs recently cautioned that current macroeconomic conditions and the high-interest-rate environment are different from previous halving cycles, one report said.
Bitcoin's price in the midterm will depend on supply-demand dynamics and continued demand for spot bitcoin ETFs, Goldman said.
Coinbase Stock: Its Role As Custodian
Coinbase has a central role to play as custodian for the majority of the spot bitcoin ETFs.
Custodial banks in traditional finance settle trades and manage regulatory reporting, dividends and other shareholder services. Custodians keep and manage client assets, such as stocks, which is why stock traders rarely see any of the actual shares they purchase.
Cryptocurrency custodians fulfill a similar role. But there are some key differences that make the process more complex, such as technological, security and storage requirements specific to bitcoin and other digital assets.
Custodians typically charge a fee for assets under custody, or AUC, similar to the traditional finance world. The AUC charges are usually some basis-point charges on the assets that they're contracted to custody.
Who Coinbase Serves
Coinbase is serving as the custodian for eight of the new bitcoin exchange traded fund entrants, including the BlackRock iShares Bitcoin Trust (IBIT), the ARK 21Shares Bitcoin ETF (ARKB) and the Bitwise Bitcoin ETF (BITB).
It also is custodian for the Valkyrie Bitcoin Fund (BRRR) as well as the Grayscale Bitcoin ETF (GBTC), which converted its bitcoin trust to a spot bitcoin ETF. Also, the VanEck Bitcoin Trust ETF (HODL) named Coinbase as its backup custodian in its prospectus.
"We've always said that ETFs would be a win-win for Coinbase, and we're starting to see that play out on our platform," Coinbase Chief Executive Brian Armstrong said on the company's fourth-quarter earnings call in February. He noted that Coinbase custody accounted for 90% of the $36 billion in bitcoin ETF assets at the time.
"We're earning revenue, not just on custody but also on trading and financing. We've already seen great demand as bitcoin is now the second-largest ETF commodity in the U.S., surpassing silver," Armstrong went on to say.
Meanwhile, spot bitcoin ETF assets under management have ballooned to around $53 billion as of April 24, according to data from The Block.
Coinbase recorded $19.7 million in custodial fee revenue for its fourth-quarter ending in December, prior to the ETF launches. FactSet analysts predict the company's custodial fee revenue will increase to $31 million in the first quarter and grow to $52 million in the fourth quarter this year.
Coinbase Earnings Turn Positive
Even though bitcoin's recent drivers haven't shown up in results yet, Coinbase has steadily reported improving financials.
With its fourth-quarter results, Coinbase reported diluted earnings of $1.04 per share, turning positive for the first time since the fourth quarter of 2021. Losses had narrowed during the three quarters leading up to the Q4 report.
Total revenue spiked 51% to $953.8 million, marking the exchange's second consecutive increase after six straight quarters of double-digit declines.
Consumer transaction revenue leapt nearly 60% year over year to $492.5 million and improved from $274.5 million during the third quarter. Institutional transaction revenue increased 173% to $36.7 million, also climbing from $14.1 million last quarter.
Total subscription and services revenue climbed nearly 33% to $375.4 million.
Outlook For Coinbase Stock
Meanwhile, all signs are pointing to a strong first quarter for Coinbase.
Transaction revenue is already accelerating. Coinbase recorded $320 million in transaction revenue through Feb. 13, which is about halfway through the quarter, Chief Financial Officer Alesia Haas said during the February earnings call. The company generated a total of $374.7 million during the first quarter of 2023.
Coinbase predicted subscription and services revenue will range from $410 million to $480 million, compared with $361.7 million for the year-ago period.
Analysts polled by FactSet predict Coinbase will report earnings of $1.05 per share, swinging from a loss of 34 cents per share the year prior. They see revenue jumping 71% to $1.32 billion.
Price-Target Hikes For Coinbase Stock
A number of firms hiked their price targets on Coinbase stock this month, generally based on the booming crypto adoption and heightened activity after the spot bitcoin ETF approvals.
Oppenheimer predicts Coinbase's first-quarter trading volume could increase as much as 107% year over year to $300 billion, one report said. The brokerage is cautious about some near-term volatility but is bullish on long-term blockchain technology adoption, from which Coinbase should benefit.
Oppenheimer hoisted its price target on Coinbase stock to 276 from 200 and maintained an outperform rating on shares.
In its note to clients, Piper Sandler agreed that the new bitcoin ETFs seemed to help drive retail traders back into the market. That should fuel strong first-quarter results for U.S. crypto exchanges and brokers, a report said. Piper Sandler lifted its price target on Coinbase to 245 from 225 but kept a neutral rating on the stock.
Compass Point said in a note that it expects Coinbase to report revenue and adjusted earnings "considerably" above estimates, a report said. That's based on significant volume growth in March and during the first quarter. Compass Point raised its price target by $90 to 325 and maintained a buy rating on Coinbase stock.
Long-Term Challenges
Meanwhile, Mizuho expects Coinbase could top first-quarter revenue estimates by 40%, it was recently reported. Mizuho based that on an influx of retail investors and strong spot cryptocurrency volumes. The firm recently lifted its price target on Coinbase stock to 145 from 84. It maintained an underperform rating on the shares.
Long-term fundamental concerns remain, such as pressure on retail fee rates, Mizuho said. There's also a heavy reliance on lower-quality and cyclical revenue streams like altcoins, staking and interest income, the brokerage said.
Meanwhile, another report said Bernstein has hiked its Coinbase price target to 200 from 80. The brokerage kept a market perform rating on the stock.
"It is simply hard not to be bullish on Coinbase in the very near-term given the high beta to crypto asset prices, especially bitcoin," Bernstein wrote in a note. The firm warned that it believes Coinbase is a "net loser" in the medium term due to ETF approvals potentially pulling some business from Coinbase.
But Coinbase CEO Armstrong is more optimistic about the impact spot bitcoin ETFs have on crypto markets as a whole.
"We want fees to come down and make it lower friction for people to get into crypto through all kinds of different vehicles. ETFs are a massive way to get more capital to come in," Armstrong said during the company's February earnings call. "We're seeing elevated engagement and net inflows on both retail and institutional Q1 to date. So in my view, the ETFs are just a totally positive thing."
Coinbase Stock After The Halving
COIN stock has retreated about 23% from its March 25 peak of 283.48. That marked its highest level since December 2021.
Shares attempted a rebound above their 50-day line on Tuesday but that failed to develop. Coinbase climbed about 3% during the week after falling 14% last week prior to the halving.
COIN stock has a 97 Composite Rating out of a best-possible 99. The Composite Rating combines various technical indicators into one score.
The stock's relative strength line has fallen from its late-March highs but Coinbase is still outperforming the broader market with a perfect 99 Relative Strength Rating.
https://www.investors.com/research/the-new-america/coinbase-coin-stock-spot-bitcoin-etfs-crypto-interest/?src=A00220
Earnings will blow it out
of the water 🤑
Zacks Equity Research 4/25/2024: Zacks Ranks COIN #1 ( STRONG BUY )
" The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 45.37% higher. Currently, Coinbase Global, Inc. is carrying a Zacks Rank of #1 (Strong Buy)."
https://finance.yahoo.com/news/coinbase-global-inc-coin-stock-214518173.html
Article by Gamza Khanzadaev: Dogecoin ( DOGE ) Listing on Coinbase ( COIN ) likely.
" The long-awaited listing of futures for the popular meme cryptocurrency Dogecoin (DOGE) on leading U.S. exchange Coinbase appears increasingly likely, as mysterious transfers totaling nearly 557 million DOGE, equivalent to $68.7 million, were detected earlier today by Whale Alert. The transfers, originating from previously inactive wallets "DFBx6" and "DCTpB," signal potential developments in the near future."
Read more on U.Today https://u.today/dogecoin-doge-listing-on-coinbase-might-be-imminent-as-these-mysterious-transfers-hint
Your efforts are appreciated, but ' nickypicky ' isn't interested in the facts which why I have him on IGNORE!
How crypto helps Americans keep their share of the pie
Tldr: Frustration over fees and delays are the top reasons why nearly 9 in 10 Americans want an updated financial system. People and businesses lose tens of billions of dollars in transaction fees and countless hours in delays to the current system that they wouldn’t with crypto. Just in time for the NBA Finals, a new Coinbase ad campaign uses pizza to explain how crypto is helping to update the system so it’s cheaper and faster.
By Coinbase Company, April 24, 2024, 3 min read time
https://www.coinbase.com/blog/how-crypto-helps-americans-keep-their-share-of-the-pie?__cf_chl_rt_tk=BgrCBxaQ92nBwh1jsvLRxXtvf4a5tCqO23o7MoTUgi8-1714070797-0.0.1.1-1727
Thx for replying. Where do you see the insurance? Will is future.
Coinbase is FDIC insured. The fiat value of your Coinbase wallet will be insured up to $250,000 in the same way that a traditional bank insures your deposits.
Yes, Barron's had an article today by Paul LaMonica discussing Fund ownership of Coinbase and the reasons why.
I didn't write the article just posted it. Quoting it:
"We bring all this up because six months after our first correct prediction that China's spike in FX outflows would send bitcoin surging, it's time to do it again."
the flight of capital from China is mainly due to China restricting capital outflows to maximum of $50,000./year. bitcoin movement is mostly these ETF bitcoin and pension funds and mutual funds having it as .005% of their portfolio like gold. or commodity. they don't know the risk of it. it could all disappear if gov't crackdown. like China ban crypto.
bitcoin is traded like 'currencies' speculation and type of trading. and viewed by institutions as an legit 'asset' like currency, oil contracts, or any 'commodity asset hence the trading volume. look at the hundreds of bitcoin etf and so many of the bitcoin mining companies? I still don't get this bitcoin thing where you pay millions to in bitcoin farming and using industrial computers to 'mine' bitcoin.
It's not individuals who boosting values of crypto coins, the main catalyst is the institutions like pension funds, blackstones, and the hundreds of ETF in every exchange who own it and making the 3% management fees and 10% flow commission to the bitcoin exchanges. why SEC even waste time saying to approve, in some exhanges 10% of the daily volume is now bitcoin etf, there is even bitcoin futures.
"China's Capital Flight Could Fuel Bitcoin’s Next Rally"
https://oilprice.com/Finance/the-Markets/Chinas-Capital-Flight-Could-Fuel-Bitcoins-Next-Rally.html
Today's Article: " Coinbase’s earnings will “blow out estimates.”
" Researcher for crypto research company Messari, Kunal Goel, explained that over the last three quarters, his Coinbase revenue estimates “have handily beaten consensus analyst estimates.”
“I estimate Coinbase will generate a whopping $1.5 billion in net revenue for Q1 2024 growing by 65% for the quarter. My estimate is much higher than consensus estimate of $1.2 billion for gross revenue,” he explained in a recent X post. "
https://cointelegraph.com/news/crypto-exchange-coinbase-wall-street-traders-earnings-report
Today's article by Soumya Eswaran " Should You Hold Coinbase Global ( COIN )?
" Patient Capital Opportunity Equity Strategy stated the following regarding Coinbase Global, Inc. (NASDAQ:COIN) in its first quarter 2024 investor letter:
'This quarter we benefited from our exposure in the cryptocurrency space. The approval of 11 new spot Bitcoin ETFs dramatically opened Bitcoin to new investors for the first time. Investors’ interest was material, with assets under management growing to $55B over a single quarter. Coinbase Global, Inc. (NASDAQ:COIN) was a beneficiary of these events as we believe it is building the foundation of the crypto-ecosystem. We continue to believe COIN has the potential to be the platform for crypto as it has continued to widen its moat by investing throughout the most recent crypto winter.' "
https://finance.yahoo.com/news/hold-coinbase-global-coin-065338674.html
From today's Article by Jose Lanz on Decrypy
Further revenues from trading to be expected.
"The price surge comes after Coinbase International, the global branch of the largest U.S. crypto exchange, announced the listing of PEPE perpetual contracts. This move is significant as it adds liquidity and increases the asset's exposure."
"The opening of Coinbase's 1000PEPE-PERP market was originally planned for April 18, but was delayed for technical reasons. Trading will now begin on Tuesday, April 23.
And of course, such an event was met with enthusiasm—and memes—all over Crypto Twitter. Coinbase also announced perpetual futures around Dogwifhat (WIF), a leading Solana meme coin, with trading set to begin on April 25."
https://decrypt.co/227538/ethereum-meme-coin-pepe-surges-16-percent-coinbase-futures
IMO, it looks like they're blocking any run and holding down the pps prior to earnings report next Thursday. Time will tell if I am correct. GLTA!
bought some today
The Motley Fool Article by Jon Quast – Apr 22, 2024 at 4:37AM
Key Points:
- Coinbase generates revenue from a stablecoin, and adoption levels for this coin have been rising during the last four months.
- Transactions on the company's platform are also surging, which could contribute to a blowout quarter next month.
https://www.fool.com/investing/2024/04/22/heres-the-good-news-for-coinbase-stock-that-nobody/
Halving is ready ! Start the New High Up to the $ 85000 Level 1 !!!
Coinbase Announces Date of First Quarter 2024 Financial Results
April 18 2024 - 4:05PM
Business Wire
Coinbase Global, Inc. (the “Company” or “Coinbase”) announced today that it will publish its first quarter 2024 shareholder letter, including financial results, on its Investor Relations website at investor.coinbase.com on Thursday, May 2, 2024, after market close. The Company will hold a question and answer session to discuss its financial results at 2:30 p.m. PT that same day.
Starting on April 25 at 9:00 a.m. PT, all shareholders will be able to submit and upvote questions for Coinbase management by visiting here. This Q&A platform will remain open until 24 hours before the earnings call. Shareholders can email support@saytechnologies.com for any support inquiries.
To register for the webcast, please use this link. A live webcast of the call will be available on the Investor Relations website at investor.coinbase.com. Following the call, a replay of the call, as well as a transcript, will be available on the same website.
Disclosure Information
Coinbase uses the investor.coinbase.com and blog.coinbase.com websites, as well as press releases, public conference calls, public webcasts, our X feed (@coinbase), our Facebook page, our LinkedIn page, our YouTube channel, and Brian Armstrong’s X feed (@brian_armstrong) as means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD.
About Coinbase
Crypto creates economic freedom by ensuring that people can participate fairly in the economy, and Coinbase (NASDAQ: COIN) is on a mission to increase economic freedom for more than 1 billion people. We’re updating the century-old financial system by providing a trusted platform that makes it easy for people and institutions to engage with crypto assets, including trading, staking, safekeeping, spending, and fast, free global transfers. We also provide critical infrastructure for onchain activity and support builders who share our vision that onchain is the new online. And together with the crypto community, we advocate for responsible rules to make the benefits of crypto available around the world.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240418898747/en/
Press:
press@coinbase.com
Investor Relations:
investor@coinbase.com
https://ih.advfn.com/stock-market/NASDAQ/coinbase-global-COIN/stock-news/93682346/coinbase-announces-date-of-first-quarter-2024-fina
Article: Crypto analyst Will Clemente believes Coinbase is “the biggest kind of venture style bet in public markets” since Tesla.
https://cointelegraph.com/news/coinbase-coin-stock-price-plummets-undervalued-base-ethereum-layer-2-blockchain
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