Coinbase is poised to command an astronomical valuation when the digital currency exchange goes public on Wednesday. But ask 10 market experts how the company should be valued, and you’ll likely get 10 different answers.
That’s because Coinbase’s current business — the one that produced a whopping $1.8 billion of estimated revenue in the first quarter and up to $800 million in net income — is built almost entirely on the performance of bitcoin and ethereum.
Those cryptocurrencies have skyrocketed more than 800% and 1,300% respectively in the past year. As a result, Coinbase, the most popular place for U.S. investors to purchase those assets, has grown ninefold over that stretch. Read more…..
Chart of the Day
Warren Buffett and Charlie Munger address the topic of capitalism at the 1996 Berkshire Hathaway annual meeting.