Coinbase Smashes Q3 2023 Revenue Expectations, Paving the Way for Crypto’s Online Takeover

"Coinbase CEO Brian Armstrong Highlights 'On-Chain' as the Future of Online Interaction, Compares Cryptocurrencies to Early Days of Internet"

Coinbase CEO Brian Armstrong has outlined his vision for the future of online interaction, proposing “on-chain” as the next significant milestone. Armstrong drew comparisons between cryptocurrencies and the early days of the internet, highlighting their transformative potential. He emphasized the democratizing capacity of cryptocurrencies, which offer equal opportunities regardless of economic or geographical barriers. Armstrong also pointed out how cryptocurrencies can reduce reliance on intermediaries, expedite transactions, and enhance the security of digital assets and identities.

During an earnings call, Armstrong announced Coinbase’s global expansion into Brazil, Singapore, and Canada through strategic partnerships with regulators and payment networks. In addition to traditional cryptocurrency offerings, he underscored the importance of derivatives in Coinbase’s portfolio. The company introduced perpetual futures to eligible customers as part of its product expansion. Armstrong also unveiled Base, Coinbase’s Layer 2 solution designed to boost transaction efficiency.

Following the mainnet launch of Base, Coinbase initiated the ‘Onchain Summer’ initiative, which has reportedly driven significant platform engagement and asset accumulation. Armstrong acknowledged securing regulatory licenses in Singapore and Spain while designating Ireland as a regulatory hub in response to Europe’s MiCA legislation. However, he stressed the need for regulatory clarity in the United States to further enhance crypto adoption.

In conclusion, Armstrong reiterated Coinbase’s vision for global economic freedom and its potential role as one of the future tech titans.

Coinbase’s financial trajectory has experienced significant fluctuations, as InvestingPro data shows. Over the last six months, the company’s stock price has seen a notable increase of 47.32%, with a particularly high return of 16.58% over the past week. However, it is important to note that the company’s stock price movements have been quite volatile, as highlighted by InvestingPro Tips.

Despite the recent revenue surge, analysts do not anticipate Coinbase to be profitable this year. This aligns with the company’s negative P/E ratio of -27.66 and the fact that it wasn’t profitable over the last twelve months as of Q3 2023. The company’s revenue growth over the same period was -47.88%, and the adjusted operating income stood at a negative $1459.05 million.

Coinbase currently holds a substantial market capitalization of $20.96 billion. While analysts estimate the company’s fair value at $80, InvestingPro suggests a more conservative figure of $55.58.

InvestingPro offers valuable insights for potential investors, including the aforementioned data and five additional tips related to Coinbase. It is advisable to consider a comprehensive range of metrics and expert opinions when making investment decisions.

(Note: This article was generated with the support of AI and reviewed by an editor. For more information, please refer to the publication’s terms and conditions.)

Martin Reid

Martin Reid

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