![]() ![]() It also is encouraging more users to think beyond simply buying and selling assets like Bitcoin and Ethereum.īy the end of the first quarter, Coinbase expanded its staking offer to include Cardano’s native ADA token, a top 10 crypto asset by market cap. To diversify revenue streams, it is hoping to build out new businesses like its new exchange platform for buying and selling non-fungible tokens (NFTs). This would imply a decline to around $23 per share, far below Friday’s closing price of $75.Ĭoinbase still collects 87% of its topline from trading commissions, according to the company's first-quarter figures. “Money-losing broker dealers, if you witness Robinhood, generally trade at one to one and a half times tangible book value ,” he said.Ĭurrently this figure is in the low 20s, and by the end of this year it could even be in the mid-teens, according to Chanos’s estimates. Valuation multiples should subsequently plunge. This compares to a small first-quarter profit of $20 million and $4.1 billion in 2021. Despite the ongoing slump in crypto markets, however, the company actually bulked up on staff recently.Ī full quarter of its roughly 4,950 employees were added in the first three months of the year alone.Ĭoinbase currently forecasts adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to swing to a $500 million loss for the full year. This means Coinbase will have to cut costs at a faster pace than the rate its revenue base shrinks. He estimates the 150 basis points it charges on trading volume down to potentially as low as 50 bps, already down from a "stunningly high" 400 bps it collected at one point. The Wall Street veteran, who made a name betting successfully against corporate frauds like Enron, expects Coinbase’s fees to compress from their current levels as competition from rivals including Binance, Kraken, Gemini, and FTX intensify. “It was a call on what we thought was a sort of ancillary predatory business model.” “Coinbase was not a call on crypto prices,” Chanos said in a podcast published on Sunday. He told the Crypto Critics Corner podcast that Coinbase still gorges itself on overly favorable retail trading commissions, and his short position is based on an end to the “feasting” it enjoys relative to mature brokers like Charles Schwab. crypto exchange Coinbase is “tremendously overvalued” at current levels, warned short-selling legend Jim Chanos, predicting a collapse in fee income that will send the stock plunging. ![]()
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