Coinbase Global Inc (NASDAQ: COIN) debuted on the Nasdaq Stock Exchange in April at $328 a share. By early June, the stock had already tanked about 30% and has been struggling ever since to climb back up.
But Ritholtz Wealth Management’s Josh Brown is hopeful that would change in the upcoming months.
Brown’s remarks on CNBC’s “Halftime Report”
Brown added Coinbase to his portfolio this morning on continued global adoption of digital assets. Defending his move on CNBC’s “Halftime Report”, Brown said:
One of my highest conviction ideas is that over the next twelve to eighteen months, probably another trillion-dollar or so comes into digital assets. The battleships on Wall Street, they turn very slowly, but once they do, they don’t back up. So, I don’t think even volatility would stop what’s coming.
According to Brown, Gemini and Coinbase would benefit the most as investors continue to put their money in crypto assets. Gemini, however, is not a publicly-traded company.
Does Coinbase justify the market cap?
Brown expects rising cryptocurrency prices to translate into a higher stock price for Coinbase as “the higher these things go, the more adoption there will be”. He agreed that the market cap was large but said it was justified for the following reasons:
They have 68 million verified users, well on track to hit 100 million soon; $180 billion in assets, $462 billion in trading volume every quarter, 10,000 institutions are already working with them on custody, 160,000 ecosystem partners, they’re in 100 countries.
Last week, Needham’s John Todaro predicted strong Q3 volumes for the crypto exchange company. Coinbase shares are up more than 5.0% on Thursday.
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