Apr 16, 2021

Gil Luria, director of research at D.A. Davidson, talks about Coinbase’s performance on its first day as a public company. In this episode, Gil discusses:

• the significance of Coinbase going public (1:05)
• why doing a direct listing was a risky move (1:31)
• why he revised his price target for COIN from $440 to $650 (3:17)
• how investing in COIN as a “pure play” crypto company compares to buying stock in companies like MicroStrategy and Square (5:06)
• why some people are disrupting Coinbase’s actual market cap (7:11)
• whether Coinbase can smooth out revenue over the long term and not be so correlated to the crypto markets themselves(10:45)
• what sort of statistics Gil is looking for in valuing Coinbase (13:08)
• why Gil thinks Coinbase can meet its goal of growing non-transaction revenue from 4% to 50% in five to ten years (15:32)
• how Coinbase could navigate the compression of fees that will occur as competition increases among exchanges (17:33)
• whether Coinbase’s stance as an apolitical company could affect the stock price in an era in which companies are getting involved in issues like voting rights (19:45)
• whether the Bitcoin price and COIN stock price will always be highly correlated (21:18)
• which other crypto companies are good candidates for going public as well (22:35)
• weekly news recap (24:03)

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Episode links:

Gil Luria

• Twitter profile: https://twitter.com/gilluria  
• Introducing Crypto’s Amazon Moment (written by Gil): https://unchainedpodcast.com/wp-content/uploads/2021/03/DA-Davidson-Coinbase-Initiation-20210302.pdf 
• 2013 Quote from Gil on Bitcoin: https://www.streetinsider.com/Analyst+Comments/Bitcoin+Could+Be+Worth+10-100x+Current+Price+-+Analyst/8936836.html
• Previous Unchained Appearance: https://unchainedpodcast.com/is-coinbase-stock-a-good-buy-this-analyst-says-yes/ 

Related Content

• Ellie Frost Blog:
• • https://frostbyte.substack.com/p/coinbase-earnings-some-less-obvious 
  • https://frostbyte.substack.com/p/coinbase-earnings-will-blow-you-away
• Tweet Thread on Market Cap Discrepancy w/ Comment From Jeff Dorman
• • https://twitter.com/laurashin/status/1382746574577668111
  • https://twitter.com/jdorman81/status/1382749674105237507
• Forbes Coverage of Coinbase Direct Listing:
• • https://www.forbes.com/sites/jonathanponciano/2021/04/14/coinbase-skyrockets-in-nasdaq-listing-landing-105-billion-valuation-on-first-day-of-trading/?sh=3afb44928dc1 
  • https://www.forbes.com/sites/jeffkauflin/2021/04/14/coinbases-ipo-creates-a-multibillion-dollar-windfall-for-founders-now-it-faces-five-big-threats/?sh=13405d8e61ff 
• Brian Armstrong CNBC Interview on Transaction Fees:
• • https://twitter.com/SquawkCNBC/status/1382279472599162880?s=20