Fintech & EM-focused Analyst, KT Capital Group

Alec Tseung

Fintech & EM-focused Analyst

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

Equity Bottom-Up

<ul>
<li>Coinbase reported its first net loss since listing, as warned by the management before, due to both declining trading/transaction revenue and a continued increase in operating expenses.</li>
<li>Besides the impairment charges, the increase in Q1'22 operating expenses was mainly because of the headcount growth as Coinbase plans to further expand its business offerings this year.</li>
<li>Coinbase's earnings for the year will unlikely improve as the company sticks to the plan to make 2022 an investment year regardless of the downturns in the broader crypto markets. </li>
</ul>


Coinbase reported its first net loss since listing, as warned by the management before, due to both declining trading/transaction revenue and a continued increase in operating expenses.
Besides the impairment charges, the increase in Q1'22 operating expenses was mainly because of the headcount growth as Coinbase plans to further expand its business offerings this year.
Coinbase's earnings for the year will unlikely improve as the company sticks to the plan to make 2022 an investment year regardless of the downturns in the broader crypto markets. 


Coinbase Q1’22: A Deeper Look Into the Operating Expenses

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<ul>
<li>We said previously that we would remain positive on Monex until there were signs of a crypto currency breakdown. </li>
<li>That now appears to be happening and we are thus leery of the pure long trade here. </li>
<li>However, earnings trends are reasonable and we still like the name so we would examine hedging options.</li>
</ul>


We said previously that we would remain positive on Monex until there were signs of a crypto currency breakdown. 
That now appears to be happening and we are thus leery of the pure long trade here. 
However, earnings trends are reasonable and we still like the name so we would examine hedging options.


Monex – Bitcoin Breakdown Means This Needs a Hedge

<ul>
<li>
<a href="https://www.smartkarma.com/entities/coinbase-global-inc" target="_blank" data-smartkarma-citation="entities:32227:1" rel="noopener">Coinbase (COIN US)</a> has significant growth potential in non-transaction revenue with its crypto platform strategy and various initiatives underway.</li>
<li>This would also help the company move away from competing just on fees in the long run, although fee compression is unlikely to materialize in the medium term.</li>
<li>Using P/S ignores the company's profitability. On a P/E basis, the company's valuation looks reasonable compared to other major Fintech/payments peers.  </li>
</ul>



Coinbase (COIN US) has significant growth potential in non-transaction revenue with its crypto platform strategy and various initiatives underway.
This would also help the company move away from competing just on fees in the long run, although fee compression is unlikely to materialize in the medium term.
Using P/S ignores the company's profitability. On a P/E basis, the company's valuation looks reasonable compared to other major Fintech/payments peers.  


2022 High Conviction: Coinbase Is More Than Trading Coins

SPAC Deep Dive, subSPAC

subSPAC

SPAC Deep Dive

Each week we’ll identify and break down for you SPACs that are capturing market share and making an impact.

Thematic (Sector/Industry)

<ul>
<li>We identify and break down for you SPACs that are capturing market share and making an impact.</li>
<li>SPACs have thrived for the better part of the last eighteen months because it has filled a void for both investors and companies looking to raise capital.</li>
<li>Early Stage Companies also benefit from SPAC deals as they have access to a large pool of capital, can accelerate the process of going public, and even provide forward-looking guidance</li>
</ul>


We identify and break down for you SPACs that are capturing market share and making an impact.
SPACs have thrived for the better part of the last eighteen months because it has filled a void for both investors and companies looking to raise capital.
Early Stage Companies also benefit from SPAC deals as they have access to a large pool of capital, can accelerate the process of going public, and even provide forward-looking guidance


China and US Equity Analyst

Roger Xie

Cross Asset Strategy

<ul>
<li>The proposed bank license for stablecoin issuers will be long-term positive to crypto industry and appealing to institutional investors. This is further step for US consumer protection.</li>
<li>For crypto wallet providers, they generally experienced weaker Q3 trading activities but expected strong rebound in Q4.  Coinbase and Robinhood engagement metrics (MAU) have also reflected the greater interest.</li>
<li>The overall outlook for the crypto-ecosystem is getting better as more institutions started to see <a href="https://www.smartkarma.com/entities/bitcoin-usd" target="_blank" data-smartkarma-citation="entities:25895:1" rel="noopener">Bitcoin (XBTUSD CURNCY)</a>  as more than digital gold and a hedge on fiat inflation. </li>
</ul>


The proposed bank license for stablecoin issuers will be long-term positive to crypto industry and appealing to institutional investors. This is further step for US consumer protection.
For crypto wallet providers, they generally experienced weaker Q3 trading activities but expected strong rebound in Q4.  Coinbase and Robinhood engagement metrics (MAU) have also reflected the greater interest.
The overall outlook for the crypto-ecosystem is getting better as more institutions started to see Bitcoin (XBTUSD CURNCY)  as more than digital gold and a hedge on fiat inflation. 


Crypto: Banking License for Stablecoin Issuers and Better Crypto Trading Volume in Q4

United States

Coinbase Global, Inc. provides financial solutions. The Company offers platform to buy and sell cryptocurrencies. Coinbase Global serves clients worldwide.

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Coinbase Global (COIN US)

Coinbase Q1’22: A Deeper Look Into the Operating Expenses

A major reason why COIN reported weak Q1'22 earnings was also due to the increase in operating expenses. We will take a deeper look into the...

Alec Tseung

Monex – Bitcoin Breakdown Means This Needs a Hedge

We said previously that we would remain positive on Monex until there were signs of a crypto currency breakdown. With that occurring we are leery...

Mio Kato

2022 High Conviction: Coinbase Is More Than Trading Coins

The fast development in the broader crypto economy could present significant growth potential to Coinbase (non-transaction revenue). This will...

Alec Tseung

Three SPAC Sectors to Look at in 2022

We identify and break down for you SPACs that are capturing market share and making an impact. SPACs have thrived for the better part of the last...

subSPAC

Crypto: Banking License for Stablecoin Issuers and Better Crypto Trading Volume in Q4

The overall outlook for the crypto-ecosystem is getting better as more institutions started to see crypto ($bitcoin) as more than digital gold and...

Roger Xie

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