Coinbase Stock (COIN.US): Live Price Chart

There's no easy answer to this question - it depends on a number of factors, including your investment goals and risk tolerance. However, if you're looking for a potential high-growth investment, Coinbase shares could be worth considering. Coinbase is one of the leading cryptocurrency exchanges, and its user base has grown significantly in recent years. If demand for cryptocurrencies continues to increase, Coinbase could see strong growth in the future.

Of course, there are also risks to investing in Coinbase shares. Cryptocurrencies are still a relatively new and volatile asset class, so there's always the potential for sharp price swings. And as a regulated company, Coinbase is subject to changing regulations that could impact its business. So, ultimately, whether or not Coinbase shares are a good investment for you depends on your individual circumstances and investment goals. If you're willing to stomach the risks, they could be worth considering. However, if you're looking for a more stable investment, there may be better options out there.

The largest shareholder of Coinbase is its CEO, Brian Armstrong, who owns about 25% of the company. Other major shareholders include Andreesen Horowitz (15%), Union Square Ventures (10%), and Ribbit Capital (8%). Coinbase's shareholders are mostly made up of venture capitalists and early investors in the company. However, some retail investors have also bought shares in the company through private placements.

No, Coinbase does not pay dividends on its shares. However, the company has been growing rapidly and is expected to generate significant profits in the future. As such, shareholders may benefit from capital appreciation of their shares over time. Coinbase may also issue special dividends or share repurchases in the future if its board of directors deems it to be in the best interests of the company and its shareholders.

Crypto exchange Coinbase struggled throughout 2022. The crypto bear market and FTX collapse saw trading volumes dwindle, hurting Coinbase revenues. Can the firm recover in 2023?

In mid-April 2023, the Coinbase share price is up by 88% YTD. How much further could the rally extend?

Positioning and flows are likely to play a major role. Along with memestocks such as AMC & Gamestop, the share price has been impacted by some monumental short squeezes.

Theoretically yes. The coinbase business model is similar to almost every exchange/broker. Charge fees for providing trading services. Most fees are a percentage of the value of the underlying asset or transaction.

However, overall trading volumes are an important revenue driver. More participants (more overall trades) means more transactions to charge commissions for. The value of those securities is secondary.

Not according to Morgan Stanley. Their analysis found that Binance dominated BTC trading on exchanges.

Binance cut BTC trading fees to zero in July last year and has continuously been gaining market share. 81% of BTC traded on exchanges in February was traded on only one exchange, Binance.

Our conclusion is that traders on Binance now set the daily price for BTC. Investors mostly ask us about Coinbase as that is the largest listed crypto stock, but we would argue that the flows on Binance should be more closely monitored to understand what is going on in the markets.

For context,after bitcoin rallied 40% in January, the volume of BTC/USDT traded on Binance reached 38x that of the equivalent pair on Coinbase relative to being only 4x in early 2022.

No. In the fourth quarter of 2022, Coinbase reported operating income of negative $555 million, the fourth consecutive quarterly loss. Despite the lack of profitability, stock-based compensation doubled in 2022 vs 2021.

In 2022, Coinbase paid out almost $1.6 billion in stock-based compensation.

Coinbase’s second largest source of revenue in 2022 was interest income of $327 million. COIN doesn’t pay interest on deposits. By depositing their own cash and that of customers into high quality liquid assets such as US treasury bills, the broker can earn passively.

COIN is not a registered exchange. SEC registration as a public company does not circumvent the law. Coinbase is operating as an unregistered securities exchange while the SEC & CFTC argue about the definition of crypto assets as securities or commodities.

Regulators could decide to shut down Coinbase, or impose sanctions and restrictions on the business at any time.

Based on an average of Wall Street analyst coverage, Coinbase is fairly valued at approximately $70 per share. However, there’s a huge range, with a price target of $200 per share on the high side and $30 per share on the low side.

However, analyst estimates don’t see Coinbase turning a profit in 2023 or 2024. If trading volumes don’t increase the business increasingly relies on other revenue streams to maintain operations.