![]() In addition, the company's entry into financial hubs like Brazil, Singapore, and India further showcases its commitment to international expansion.Ĭoinbase also unveiled its International Exchange for institutional investors across the globe, catering to rising demand for leveraged trades via perpetual future contracts. ![]() Today, it offers its Coinbase One subscription plan in 34 countries. ![]() In recognition of potential domestic challenges, Coinbase has made it a priority to solidify its role overseas. To add to revenue diversification, Coinbase took significant strides to expand its customer base with its "Go Broad, Go Deep" international strategy. Expansion overseas and growing institutional base Adding to more profitable earnings, a rebound in the crypto market and record low expenses helped bolster Coinbase's position and close the gap on returning to profitability.ĭata source: YCharts 3. As was evident in the Q1 2023 earnings report, Coinbase's dependence on transaction fees went from more than 95% in 2021 to only about 50% today. This strategic move is beginning to show signs of paying off. However, Coinbase proactively addressed this issue by expanding its subscriptions and services division, offering custodial services, staking, and interest-earning products. During the most recent crypto bear market, the company's reliance on transaction fees led to a significant revenue decline. One of the other main concerns with Coinbase was its correlation to the health of the broader crypto market. Robust earnings and diversified revenue streams In a letter penned to the SEC, Representative Ritchie Torres of New York eloquently captured current sentiment when stating that it was past due to "give us some damn legislation so we can get on with life." 2. Multiple pieces of legislation to provide a clearer framework are under review. Moreover, frustration among the public and politicians with the SEC's approach to crypto regulation is mounting and has led to calls for Congress to enact legislation. Since the SEC is only able to bring cases to courts and the final decision lies in the hands of judges, the result of the XRP trial provides a glimmer of hope for Coinbase's own legal battle. This generalizes some details, but the overarching result was viewed as a resounding success and a step forward in crypto's case for being outside of the SEC's purview. While this understandably alarmed investors, there are a handful of reasons to believe that the SEC's plans to rein in Coinbase will be unsuccessful.įirst, in a separate case brought by the SEC against the cryptocurrency XRP, a judge ruled that XRP was not a security. By June, an official subpoena was filed alleging the sale of unregistered securities on Coinbase's platform and threatening its primary source of income. In March 2023, the Securities and Exchange Commission (SEC) issued a Wells Notice to Coinbase, a prelude to legal enforcement action. The regulatory landscape surrounding cryptocurrencies has been uncertain and challenging in the U.S., but recent developments indicate a potential shift in favor of the industry. Here are three compelling reasons I believe Coinbase is on track to become a leading choice for investors' portfolios for years to come. But since then, Coinbase has proven agile and resilient, renewing my faith in the company's long-term potential. ![]()
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