COIN - I'm Still Not Sure On Coinbase

2024-04-15 08:31:54 ET

Summary

• Coinbase Global, Inc. is a leading crypto exchange, with positive cash flows and better economics than crypto miners.
• The company has experienced significant growth during the bull market of 2021, but faced challenges in 2022 due to external factors.
• Despite the setbacks, Coinbase has managed to flesh out the business and continues to evolve under management's vision.
• The upside is potentially huge, but it's also a steep climb that depends on outside forces working out well.
• Given this, investors should be picky on their entry price.

I have recently covered other investments in the crypto space, one of them being Bitwise's ETF ( BITQ ). While I was generally pessimistic about the fund and its constituent companies, I had a better summary of Coinbase ( COIN ):

Coinbase Global, Inc. strikes me as probably the best business of the bunch. It is a crypto exchange, and it's not exclusive to BTC transactions. It enjoys high cash flow from operations most years, with outflow from capex.

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