Coinbase Global Stock Intrinsic Value – SEC’s Lawsuit Against Coinbase Proves Positive for Bitcoin’s Future
June 14, 2023
☀️Trending News
The news of the US Securities and Exchange Commission’s (SEC) lawsuit against Coinbase Pro has been met with great enthusiasm by the Bitcoin community, as it signals the regulator’s recognition of Bitcoin’s growing importance as an asset. This move by the SEC proves that Bitcoin is being taken seriously on the global stage and is seen as a viable investment option. It also indicates that the SEC is taking measures to protect investors in the digital currency space. Coinbase Global ($NASDAQ:COIN) is one of the leading cryptocurrency exchanges in the world.
Coinbase Global is also listed on the Nasdaq exchange, making it the first major cryptocurrency exchange to be publicly traded. With its strong security protocols and excellent customer support, Coinbase Global is an attractive choice for anyone looking to invest in cryptocurrency.
Share Price
On Monday, the stock price of COINBASE GLOBAL had opened at $52.5 and closed at $50.6, a drop of 5.1% from the prior closing price of 53.3. Despite the initial reaction, analysts believe that this lawsuit can actually prove positive for Bitcoin’s future. The SEC’s lawsuit against Coinbase Pro could set a strong precedent for future regulations concerning digital assets. This would provide much needed clarity to the sector, as well as increased security for investors. Furthermore, it could ultimately help to legitimize cryptocurrencies as an asset class and lead to more widespread adoption.
The SEC’s actions could also help to level the playing field between Bitcoin and other traditional financial instruments, such as stocks and bonds. This could result in more institutional investors taking an interest in Bitcoin and fueling further growth in the industry. Overall, while the SEC’s lawsuit against COINBASE GLOBAL may have caused initial uncertainty in the stock market, analysts believe that it could actually be a positive sign for Bitcoin’s future. The potential for increased regulation and legitimacy could lead to more widespread adoption and help to level the playing field between cryptocurrencies and other traditional financial instruments. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Coinbase Global. More…
| Total Revenues | Net Income | Net Margin |
| 2.8k | -2.27k | -75.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Coinbase Global. More…
| Operations | Investing | Financing |
| -1.03k | 1.69 | -4.65k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Coinbase Global. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 139.3k | 133.63k | 24.2 |
Key Ratios Snapshot
Some of the financial key ratios for Coinbase Global are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 81.6% | – | -90.4% |
| FCF Margin | ROE | ROA |
| -39.3% | -28.4% | -1.1% |
Analysis – Coinbase Global Stock Intrinsic Value
At GoodWhale, we analyze the fundamentals of COINBASE GLOBAL to determine its fair value. After careful examination of the company’s financials, our proprietary Valuation Line has determined that the fair value of COINBASE GLOBAL shares should be around $69.5. However, it is currently trading at $50.6, which is 27.2% below its fair value. Therefore, we believe that the stock is currently undervalued and investors should take advantage of this opportunity for potential upside. More…
Peers
The competition between Coinbase Global Inc and its competitors is fierce. Each company is trying to get a larger share of the market and to be the leading digital currency exchange. Coinbase Global Inc is the largest digital currency exchange in the world and it has a lot of experience. However, its competitors are also very experienced and they are all trying to get a larger share of the market.
– Riot Blockchain Inc ($NASDAQ:RIOT)
Riot Blockchain Inc. is a cryptocurrency mining company that focuses on Bitcoin mining. The company has a market capitalization of $981.09 million and a return on equity of -17.02%. Riot Blockchain Inc. was founded in 2000 and is headquartered in Castle Rock, Colorado.
– Robinhood Markets Inc ($NASDAQ:HOOD)
Robinhood Markets Inc is a financial services company that offers a commission-free trading platform for stocks, options, and cryptocurrency. The company has a market cap of 9.19B as of 2022 and a Return on Equity of -33.37%. Robinhood was founded in 2013 and is headquartered in Menlo Park, California.
– MicroStrategy Inc ($NASDAQ:MSTR)
MicroStrategy Inc is a publicly traded business intelligence company. The company has a market cap of 2.66B as of 2022 and a ROE of -77.69%. MicroStrategy offers a comprehensive suite of products that enable organizations to analyze internal and external data to make better informed decisions. The company’s products are used by organizations of all sizes, in a variety of industries, including banking, healthcare, insurance, retail, telecommunications, and many others.
Summary
After its initial trading, the stock’s price rose significantly, but then experienced a sharp decline the same day. This was likely due to the US Securities and Exchange Commission (SEC) filing a lawsuit against the company alleging violations of federal securities laws. While this news initially caused concern among investors, some view it as a positive development for the cryptocurrency sector as it could lead to greater regulatory clarity. This could ultimately benefit Coinbase and other digital currency and blockchain businesses by providing increased legal certainty and investor protection.
