COIN - Coinbase: Squeezing The Lime With Coinbase Prime

2024-06-17 10:39:43 ET

Summary

• Coinbase is positioned for growth as institutional investors show increasing interest in cryptocurrency.
• I expect Coinbase Prime to be a significant revenue driver, focusing on institutional clients. Stablecoins play a big role in this growth phase too.
• Coinbase's valuation indicates potential upside, with expected revenue growth and strong EBITDA margins, indicating expansion in valuation multiples.

Investment thesis

"When life gives you lemons, you make lemonade."

This metaphor aptly describes the second generational opportunity that Coinbase ( COIN ) sits on today as institutional investors have joined retail investors on the bullish bandwagon for seeing enough appeal in cryptocurrency as an alternative asset that justifies capital allocation towards this emerging asset class....

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