How’s Coinbase (COIN) doing?
Well, from one perspective not so great. The stock is down more than 50% YTD and more than 64% all-time.
From another perspective, one could look at their current revenue, the launch of their NFT platform, and the growth of their venture portfolio to argue that the company is actually doing quite fine.
In classic value investing speak, Benjamin Graham might spew some chatter about the market being a voting machine in the short-run and a weighing machine in the long.
Regardless of your view, it’s worth taking a look at the company’s less clear endeavors to gain some investor insight. Because at it’s current market cap ($27 billion), the company is trading for significantly less than competitor FTX’s (and FTX US) valuation of $40 billion. Let’s take a look…
The Venture Portfolio is Booming
According to Coinbase Venture’s latest Q1 update, the company made the largest amount of new deals in company history, investing in 71 new companies. This continues to put Coinbase at the top of corporate VC funds in the world.
Although a shaky macro picture has put crypto companies and funds on edge, Coinbase Ventures claims they are seeing no downturn in good deals to fund.
And although we don’t have much insight into the fund’s mark ups (or downs), we have to assume the portfolio is doing quite well on paper. Just their investment in NFT exchange, OpenSea (who just recently acquired Gem) alone has to represent tens, if not hundreds, of millions of dollars.
Speaking of NFTs, Coinbase NFT is Now Live
Last week, Coinbase announced that their new NFT platform was open in beta. Many, including us here at CoinSnacks, have pointed to this as a potential boon for the company. If done right, Coinbase has the potential to onboard millions of new customers and create a new income stream to help smooth out spikes in traditional token trading.
The Company is in Talks to Acquire BtcTurk For $3.2 billion
BtcTurk, Turkey’s oldest and largest exchange, could potentially become under the Coinbase umbrella very soon. This comes immediately after reports that Coinbase is also in talks to acquire 2TM, the owner of Mercado Bitcoin, Brazil’s largest crypto exchange. And as we explained last week, the company is also making moves into India as well.
Overall, the stock could have much more room to slide, but at some point, dependent on the macro market, crypto prices, and the company’s moves, the stock may just enter into a good buying zone.