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Coinbase stock forecast 2025: it's first quarterly report

 

After the trading hours on May 13 (this Thursday), Coinbase Global (COIN) will release its first quarterly report.


 Take this opportunity to give us a glimpse of the prospects of the first share of cryptocurrency exchanges.

 Actually, on April 6, before Coinbase went public, it had already released a forecast for the first quarter of this year. The core data are as follows:

 Revenue in the first quarter was approximately US$1.8 billion, a year-on-year increase of 842%; before the net profit was between US$730 million and US$800 million, the median was US$765 million, a year-on-year increase of nearly 23 times!  Assets on the platform are 223 billion US dollars, accounting for 11.3% of the market share of encrypted assets; 56 million verified users, and 6.1 million monthly transaction users (MTU).

 It is worth noting that Coinbase's net profit margin reached a terrifying 42.5% in the first quarter, and the business model of “casino” is really profitable!

 Coinbase is essentially a cryptocurrency exchange. You can buy dozens of cryptocurrencies including Bitcoin and Ethereum on the platform.

 Coinbase's revenue is divided into three sources: transaction revenue, subscription revenue, and other revenue.

 Trading income is mainly the bid-ask spread during the transaction and the trader's commission, which is closely related to the price, volume, volatility, and type of digital currency.  When the price of digital currency is high, the company's transaction revenue has increased significantly.

 Subscription revenue includes storage revenue, "mining" revenue, channel distribution revenue, license revenue, and interest revenue.  Among them, storage income accounts for the vast majority. Channels and licenses are mainly for ecosystem partners, while interest income is affected by the current interest rate environment.

 Other income includes income from the sale of encrypted assets and the company's own interest income.

 In 2020, Coinbase's trading revenue accounted for 86%!

 Although Coinbase supports more than 90 types of encrypted assets, the main trading products are Bitcoin and Ether. Bitcoin is the absolute core among the platform assets, accounting for 70%, and Ethereum accounting for 13%.

 Therefore, Coinbase's revenue has a strong cyclical color and follows the rise and fall of Bitcoin prices.

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