2 years ago
Cryptocurrency speech Coinbase (COIN) has “hidden value” successful its Coinbase Ventures portion that investors person yet to afloat appreciate, Owen Lau, an equity probe expert astatine Oppenheimer, said successful a enactment to clients.
Coinbase Ventures’ investments aren’t yet contributing financially to Coinbase, but are “strategically important” to the institution due to the fact that they enactment the broader crypto ecosystem and adhd penetration to emerging technologies, Lau said.
Oppenheimer estimates the just worth of Coinbase’s Venture portfolio is $6.6 billion. Coinbase had invested successful implicit 250 companies done fourth-quarter 2021, with a carrying worth of astir $352 cardinal astatine outgo basis, the slope noted.
“Our sensitivity investigation shows that the marketplace worth could spell arsenic precocious arsenic $17.0B, assuming a 13% ownership stake,” Lau said. “Given the continuous superior influx to blockchain/digital assets, determination is imaginable upside to our estimate.”
Lau has an outperform proposal and $377 terms people connected Coinbase’s stock. Near-term, the stock terms is apt to beryllium dictated by the terms of bitcoin on with macroeconomic pressures, helium added.
Coinbase shares are down astir 39% year-to-date, trading astatine astir $151/share.
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Michael Bellusci is CoinDesk's crypto payments reporter.
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