Is It Finally Time to Invest in Coinbase Stock?

We often refer to crypto as “crapto” mainly for two reasons. First, winding up the Michael Saylor Kool-Aid drinkers is just plain fun. Second, it’s because this “asset class” (and we use that term in the loosest sense of the word) is rife with scams and a seemingly infinite number of ways to lose money.

Crypto now encompasses a very broad realm ranging from cryptocurrencies that are beginning to see institutional participation (i.e., Bitcoin and Ethereum) to craptocurrencies which largely obtain their value from fart jokes, memes, and greater fool theory. Deciphering which alternatives have the most promise is a rabbit hole best saved for another day.

Today, we want to look at a pick-and-shovel play that stands to benefit from all types of cryptocurrencies – Coinbase (COIN).

Until the company can dramatically reduce their reliance on retail investors, it’s not exposure we want in our tech stock portfolio – Nanalyze 2021

Coinbase Diversifies Revenues

One of the biggest problems with Coinbase has been revenue volatility which is a function of how immature the entire asset class is. Below you can see this volatility manifested on a quarterly and annual basis.