Coinbase is officially traded on the Nasdaq under the ticker COIN, and its chief financial officer has a message to Wall Street: Its business cannot be categorized.
“Coinbase is Coinbase for crypto,” Alesia Haas said in a message to The Block. The crypto exchange, whose share price fluctuated throughout Wednesday’s trading session, has been dubbed the Google of the crypto world and the Goldman Sachs of the market, highlighting its central position in the blockchain world.
Coinbase traded above $ 420 shortly after its public debut, but fell to $ 328.28 before the close of trading. At the time of writing, the exchange’s stock price is around $ 330 in after-hours trading.
On its first day of trading, $ COIN traded more than SPY, as noted by Bloomberg’s Eric Balchunas.
However, Haas would like potential investors to take a broader look at the company that generated most of its revenue from custody and trade-related services. While those revenues totaled an estimated $ 1.8 billion in the first quarter of 2021, the company’s core brokerage business could be threatened by the fee cut going forward.
“We are concentrating on the long term and will continue to diversify our offerings,” said Haas. “Today we invest primarily, but interestingly we see that over 20% of users interact with multiple products – from use to earning to borrowing / borrowing.”
Today, almost 90% of Coinbase’s revenue is transactional. But Haas told The Block in a phone interview that those revenues will diversify.
“We don’t yet know where value will grow,” she said. “We have products that touch payments, brokerage and the broader cryptocurrency ecosystem. And value can grow in many ways. It can take 5 to 10 years longer for them to be played out. But we will try to build a platform that intervenes “with all the new types of transactions that exist from fiat to crypto to decentralized financing.”
Still, it’s no secret that in an increasingly competitive environment, Coinbase operates not just from crypto exchanges, but also from a growing list of fintechs and other established financial service providers looking to leverage crypto capabilities as a new lever for monetization and user engagement.
Haas said the company’s story would serve as a competitive dig in both the crypto and traditional finance industries.
“We compete with other crypto-native companies and financial services companies. On the crypto side, we are strongly committed to compliance in our positioning. Compared to Square, PayPal and Fidelity, we are now crypto-native. We are deeply integrated into crypto protocols and not only produce the simple bitcoin experience and are not surrounded by walls like many of these platforms. “
Of course, Coinbase’s Assets on Platform (AoP) share of the total value of the crypto market has only grown in the last eight quarters. In March 2021, the company estimated it had over $ 220 billion worth of crypto on its platform.
© 2021 The Block Crypto, Inc. All rights reserved. This article is for informational purposes only. It is not offered or used as legal, tax, investment, financial or other advice.