BlockBeats news, on February 18, Coinbase CEO Brian Armstrong responded on social media to the question, “Why is Coinbase always misunderstood or undervalued by Wall Street?” stating: “I truly believe Coinbase is a misunderstood company. This is a classic case of the ‘innovator’s dilemma.’ On one hand, the most sophisticated 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 remain 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 impact on 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; the laggards will be left behind.”
Coinbase and the crypto industry have never been in a stronger position than they are today. To achieve outperformance, investors must be both early and right. Coinbase remains undervalued, a view not yet 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 “beats” or “misses.” Additionally, our GAAP net income includes unrealized gains and losses on our crypto holdings, so adjusted net income should also be monitored—we remained profitable last quarter even in a down market, a point misunderstood by many media reports.