2024-02-19 06:34:54 ET
Summary
- Coinbase's shares soared after reporting better than expected earnings for Q4, driven by the recovery in the cryptocurrency market.
- The approval of Bitcoin ETFs by the SEC has boosted investor confidence and led to a rally in cryptocurrencies, benefiting Coinbase's transaction revenues in Q4.
- Coinbase has become more diversified, reducing its reliance on volatile transaction revenues and increasing its non-trading related service revenues.
- Shares of Coinbase are a diversified bet on the crypto economy.
Shares of Coinbase ( COIN ) have soared after the company submitted a much better than expected earnings sheet for the fourth-quarter on resurging trading volumes. The company’s fundamentals are improving due to a broad recovery in the cryptocurrency market. The current rally in Bitcoin ( BTC-USD ), driven by the SEC's greenlighting of ETFs that trade Bitcoin, reflects growing confidence in the cryptocurrency market. Coinbase is also a more diversified bet on the crypto economy as the company is growing its non-trading related service revenues. I believe the risk profile is now much more favorable than last year and shares are a buy!...
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For further details see:
Coinbase: A Crypto Play With A Catalyst (Rating Upgrade)