According to the signature of investment, Hayden Capital, Coinbase’s revenue could reach $ 49.2 billion by 2025. Therefore, Coinbase is in the position to benefit from strong industry growth.
“We believe that Coinbase is in the best position to capture this growth.”
The total market capitalization is expected to be much larger in the future. In fact, a 4x increase from 2021 to 2025 is within reason in an optimistic scenario.
This would likely make Coinbase one of the 50 largest companies in the world.
Coinbase income will multiply
Indeed, by 2025, Coinbase’s revenue could reach $ 49.2 billion, under a bullish outlook of growing interest among institutional investors. Also, from the massive adoption of cryptocurrencies and the sector growing to $ 6.8 billion in value in total.
By the way, based on a more conservative cryptocurrency market capitalization estimate, Coinbase’s revenue would almost triple to $ 21.3 billion by 2025.
«The crypto economy is here to stay. It is not a fad and will grow substantially in the future».
Additionally, Hayden predicts that Coinbase’s revenue will hit $ 8.8 billion in 2021, which is higher than other analysts’ estimates. For example, FactSet predicts that Coinbase will generate around $ 7 billion in revenue this year.
According to Hayden Capital, Coinbase will maintain its market share leadership over other exchanges. While staying ahead of the competition from PayPal, Robinhood, and other fintech firms.
For example, Robinhood, PayPal, and Square’s Cash app only offer a few major tokens. While Coinbase has more than 100.
In this regard, Coinbase CEO Brian Armstrong said: «All of this is really a fundamental differentiator for us.».
Income during the second quarter
Incidentally, the US-based exchange, Coinbase, registered for more than $ 1.9 billion in trading operations, during the second quarter of this year.
This was revealed by Coinbase in its earnings report presented for the period between April and June of this year. In which it is detailed that these $ 1,900 million capitalized, are due to its more than 8.8 million users who actively operate on the platform.
In short, Hayden Capital is a company value-oriented investment strategy that follows a focused and research-intensive strategy. It was founded by Fred Liu, a former small-cap equity fund research analyst at New Street Research and JP Morgan.
Likewise, they invest globally, seeking to take advantage of the knowledge of business models developed in a geography or industry.
Its key principles are:
- Buy high-quality business at rational prices in the long term
- Focus on underlying economic values
- Staying within the circle of competence
- Concentrate capital only on the best ideas
In short, Hayden Capital believes that Coinbase has a long-term sustainable competitive position in the United States.
I close with this phrase by Eckhart Tolle: «Moving on requires strength and a lot of courage».