Coinbase CEO Says Company Remains Undervalued as Crypto Disrupts Wall Street

ChainCatcher report: Coinbase CEO Brian Armstrong responded on social media to the question, “Why is Coinbase always misunderstood or undervalued by Wall Street?” saying: “I truly believe Coinbase is a misunderstood company. This is a classic ‘innovator’s dilemma.’ On one hand, the smartest traditional financial institutions are fully embracing the crypto industry. Five global systemically important banks (GSIBs) have already begun partnering with Coinbase. Many large financial institutions are actively hiring crypto talent. As regulations become clearer, we’re seeing about 50% of large financial institutions actively embracing this trend. On the other hand, the other half remains behind and resistant. Nearly all of the world’s most disruptive innovations have followed a similar pattern—whether it’s Uber, Airbnb, autonomous vehicles, AI applications, or SpaceX’s disruption of NASA. Crypto is directly disrupting Wall Street, so it’s no surprise that some on Wall Street misunderstand crypto and Coinbase. The smart ones will embrace it; those who fall behind will be left behind. Coinbase and the crypto industry have never been in a stronger position. Investors seeking outsized returns must be ‘early and right.’ Coinbase is still undervalued, and this is not yet a consensus among traditional analysts. I recommend focusing on what the company commits to doing and whether it delivers, rather than solely on whether analyst models predict ‘beating’ or ‘missing’ expectations. Additionally, our GAAP net income includes unrealized gains and losses on our crypto holdings, so it’s important to also track adjusted net income—even in a down market, we remained profitable last quarter, a fact that many media reports have misunderstood.”