Coinbase Global Inc | Stock Price Prediction 2024 – 2050 (Detail Analysis)
The prominent bitcoin trading site Coinbase Global Inc. is an essential factor in the broad acceptance and use of digital assets. As the cryptocurrency business keeps developing and maturing, Coinbase’s stock performance has attracted a lot of interest from investors.
This research will examine Coinbase’s business strategy, forecasts for its stock price, financial performance, and potential growth drivers.
What is Coinbase Global Inc NASDAQ: COIN?
Coinbase is a digital currency exchange that has been around since 2012 and is based in San Francisco, California. It lets users purchase, trade, and store a variety of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. Cryptocurrency payment processing, custody, and staking are just a few of the many services offered by this user-friendly platform that allows individuals and institutions to participate in the cryptocurrency market.
Coinbase became public on April 14, 2021, through a direct listing on the NASDAQ stock market under the ticker name COIN. Because it introduced traditional investors to the expanding digital asset market, the company’s initial public offering (IPO) was a watershed moment for the cryptocurrency sector.
Coinbase Stock Price Prediction 2024, 2025, 2030, 2040, 2050
| Year | Bull Case | Base Case | Bear Case |
| 2024 | $400 – $500 | $300 – $400 | $200 – $300 |
| 2025 | $600 – $800 | $400 – $600 | $200 – $400 |
| 2030 | $1,500 – $2,000 | $1,000 – $1,500 | $500 – $1,000 |
| 2040 | $5,000 – $7,000 | $3,000 – $5,000 | $1,000 – $3,000 |
| 2050 | $15,000 – $20,000 | $10,000 – $15,000 | $5,000 – $10,000 |
Is Coinbase stock good to buy? (bull case & bear case)
Bull Case
- Coinbase will reap the rewards of a growing demand for its services as the use of cryptocurrencies by both people and institutions continues to surge.
- Coinbase has extended its services beyond simple trading to diversify its income streams further, including custody, staking, and payment processing.
- In the cutthroat world of cryptocurrency exchanges, Coinbase has established a name for itself as a reliable and easy-to-use platform that can win over and keep clients.
- The potential for long-term development in the cryptocurrency industry might fuel demand for Coinbase’s services, mainly because the business is still in its early stages.
Bear Case
- Legal frameworks governing the cryptocurrency sector are constantly changing, affecting Coinbase’s ability to do business and expand.
- Cryptocurrency values are unpredictable, and significant price swings might affect Coinbase’s trading volume and income.
- Other cryptocurrency exchanges and more conventional banks entering the digital asset space threaten Coinbase’s market dominance and fees.
- Bitcoin and Ethereum contribute significantly to Coinbase’s trading volume and income, making the company’s business vulnerable to fluctuations in the pricing and popularity of these cryptocurrencies.
Key Details About Coinbase
- Headquarters: San Francisco, California, United States
- CEO: Brian Armstrong
- Number of Employees: Approximately 3,730 (as of 2021)
- Market Capitalization: $17.9 billion (as of March 2023)
- Supported Cryptocurrencies: 100+ cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and others
Coinbase FINANCIAL (Balance Sheet)
| (in millions) | 2022 | 2021 | 2020 |
| Revenue | $3,149 | $7,354 | $1,277 |
| Net Income (Loss) | $(2,625) | $3,624 | $322 |
| Total Assets | $19,958 | $21,670 | $5,855 |
| Total Liabilities | $12,374 | $10,867 | $2,061 |
| Total Stockholders’ Equity | $7,584 | $10,803 | $3,794 |
KEY Performance Indicator
| KPI | 2022 | 2021 | 2020 |
| Trading Volume | $830 billion | $1,671 billion | $193 billion |
| Verified Users | 110 million | 89 million | 43 million |
| Monthly Transacting Users (MTUs) | 8.3 million | 11.4 million | 2.8 million |
| Assets on Platform | $80 billion | $278 billion | $90 billion |
Comparison with listed peers
| Company | Market Cap (2023) | Revenue (2022) | P/S Ratio (2023) |
| Coinbase Global Inc | $17.9 billion | $3.1 billion | 5.7 |
| Robinhood Markets Inc | $8.5 billion | $1.4 billion | 6.1 |
| Block Inc (Square) | $39.6 billion | $17.5 billion | 2.3 |
| PayPal Holdings Inc | $94.3 billion | $27.5 billion | 3.4 |
Positive & Negative Factors to Invest in Coinbase
Positive Factors
- As one of the first and longest-running cryptocurrency exchanges, Coinbase has a solid foundation on which to build.
- Coinbase has established itself as a reliable and straightforward platform, which might help it attract and retain clients.
- The business may diversify its revenue stream from trading fees by offering custody, staking, and payment processing services.
- Coinbase’s services may be needed due to the market’s prospective long-term expansion.
Negative Factors
- Changes to cryptocurrency regulations may affect Coinbase’s ability to do business and expand.
- Trading volumes and Coinbase’s income are susceptible to large price swings in cryptocurrencies.
- There is competition for Coinbase from other cryptocurrency exchanges, and more conventional banks are entering the digital asset market.
- Since Bitcoin and Ethereum account for a significant chunk of Coinbase’s trading volume and income, the success of both cryptocurrencies directly impacts the company’s bottom line.
Conclusion
The increasing popularity of digital assets and Coinbase’s well-known brand have helped propel the company to a preeminent cryptocurrency exchange. Company prospects are bright for the future thanks to its income diversification and the possibility of crypto market expansion. However, investors assessing Coinbase’s stock should consider the company’s reliance on important cryptocurrencies, regulatory concerns, price volatility, and fierce competition.
The unpredictable cryptocurrency market is no exception to the rule that all investments need careful consideration of one’s investing objectives, risk tolerance, and a financial professional’s advice before making any purchases.
