Thoughts on this? It’s gone from 368 to 50/share pretty quickly with the crypto markets crashing.
A business, itself a cottage “industry” based on fake “currencies” composed of nothing more than air and faux-technical hand-waving comes crashing down? Crazy. I never would’ve seen this coming.
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Honestly, this repricing has to do with projected cashflows coming down. When it comes to “fake” currencies, I hardly disagree with that. Although, I would argue that fundamentally Coinbase is in a much more robust environment to become the top crypto bank. Specifically Bitcoin and borrowing against it. I can’t get a loan from a bank just yet because I don’t have much collateral; however, on Coinbase, I can get $8,000 per bitcoin at an 8% APR(Variable btw). So in my eyes, given the p/e compression, we have seen these past 1 1/2 years. I believe Coinbase has a solid opportunity to continue to be the safest, most reliable place to buy and store crypto ( specifically Bitcoin). What that means for the future is uncertain.
This is just an opinion, and by no means do I intend to be correct. Just sharing my thoughts.