As of June 2019, Coinbase had raised a total of $547 million in venture capital funding, and was valued at $8 billion. In 2018, the company reported having 8 million registered users, with 6 million monthly active users. Coinbase also reported that it had facilitated transactions worth $150 billion.
In 2021, Coinbase's (NASDAQ:COIN) cash in hand is expected to rise 311%, from $1.061 billion to more than $4.365 billion. As a result, with a WACC of 6%, FCF of $17.3 billion, and EV/FCF of 40x, we have a stock price of $316. My own assumptions and market estimates were used to create a DCF model. According to the investment bank Morgan Stanley, Coinbase (NYSE:COST) will grow at a CAGR of 11.2% between 2017 and 2027. According to analysts, the global market for cryptocurrency is expected to reach USD 1,758.0 million by 2028. In the worst-case scenario, from 2022 to 2030, the company's sales would rise by 5% to 6%, and its free cash flow would rise by 31% to $3.1 billion. The implied price of $272 is quite close to the current market price of $176.
On May 18, 2021, the Company entered into a purchase agreement with Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC, pursuant to which the Company will issue and sell the Notes. In arrears, the Notes pay an annual interest rate of 0.50%. My WACC does not always correspond to the weighted average cost of capital that investors will typically use. It is possible that Coinbase will be disciplined for technical violations or customer attrition if the user experience suffers as a result of technical violations or customer attrition. As a result of the Fifth Money Laundering Directive, our European operations have become more regulated. If more analysts learn about the free cash flow expected for the stock, demand will increase, and the price will likely rise as well.
Coinbase's shares are currently trading at an excessive price, and the company's net earnings for 2021 increased by 27% from a year ago.
Coinbase has approximately $670 million in current liabilities, and approximately $3.39 billion in long-term debt that is conservatively funded.
Coinbase has increased the size of its bond offering from $1.5 billion to $2 billion. The company received at least $7 billion in investor interest, a significant increase from its initial offer of $500 million. The bonds have been rated BB by S.
During the course of 2021, Coinbase made a lot of money, but they've vanished now. In the first quarter, revenue fell 27% to $1.17 billion, and net income fell by more than a billion dollars to a loss of $430 million. Coinbase blamed the drop in revenue on a drop in cryptocurrency prices and a decrease in crypto trading volume. It's also worth noting that the company's reputation is tarnished by the tumultuous cryptocurrency market. Coinbase has been a market leader in the cryptocurrency market for a long time, and its revenue and earnings have been closely watched by investors. Despite this, the company's performance in the first quarter of 2022 was dismal, and the outlook for the rest of the year is not promising. The crypto market has seen a dramatic drop in revenue and profits as a result of a tumultuous environment. Coinbase's revenue and profits are closely related to the price of cryptocurrencies, and the market has been in a slump for many months. Coinbase's problems show the volatility of the cryptocurrency market. It is struggling to keep up with rapidly changing market conditions, and its revenue and profits are falling. In other words, investors should exercise caution when investing in this space because the crypto market is still volatile.