You Won't Believe What Coinbase's CEO Said
After closing at an all-time high price of $357.39 in November last year, shares of leading U.S. cryptocurrency brokerage and exchange business Coinbase Global (NASDAQ: COIN) have plunged 82%. And today, the company sports a market cap just south of $15 billion, which is a far cry from the valuation it carried at its initial public offering in April 2021. This isn't terribly surprising, however, given that the stock tends to reflect what happens in the broader crypto market, which itself has dropped more than 50% in 2022 alone.
But recent comments by Coinbase's founder and CEO, Brian Armstrong, paint a clear picture of where he wants the business to go. Here's what he said and how investors should react.
"I'd like to get to a place where more than 50% of our revenue is subscription and services," Armstrong said during a recent CNBC interview. In the second quarter, Coinbase's subscription and services revenue was $147.4 million. That represents a 43% year-over-year increase in segment revenue, but still only accounts for 18% of Coinbase's overall business. While this is up considerably from the segment's 5% share in the year-ago period, there is much progress to be made for Armstrong's goal to be reached.
Source Fool.com
