The report revealed by an Oppenheimer analyst highlights that certain Coinbase investments would perform in optimal ways if conditions are favorable. This performance could have an extraordinary impact on the value of the company’s shares.
Owen Lau, the research analyst for the Oppenheimer firm, revealed that Coinbase counts on particular hidden securities, which, although they do not derive significant numbers as profits for the company right now, pose as strategic holdings with a considerable performance in the future.
The information revealed by Lau de Oppenheimer got included in a note addressed to the firm’s clients, in which he highlighted the current role that Coinbase registered through its investment management, Coinbase Ventures, whose investment portfolio might get valued at US$6.6 billion.
Highlighting some relevant data, Lau revealed that Coinbase Ventures invested capital in more than 250 companies until the end of 2021. They all have a book value of at least USD 352 million, some of them being from the Blockchain and cryptocurrency sector.
Lau said a sensitivity analysis revealed that market value could reach as high as $16 billion, assuming a 13% ownership stake. Given the influx of capital into digital assets/Blockchain, these predictions have upside potential.
Regarding Coinbase Shares on the Exchange
Regarding the projections for the shares of Coinbase in the stock market (COIN), Oppenheimer figures a target price of around USD 370 in short/medium term in the best-case scenario, in case everything goes as expected.
However, Lau discussed that their price would receive direct influence by the price of Bitcoin and the macroeconomic aspects that move the current market.
Since Coinbase’s shares appeared on the stock market, they crumbled down 39%, with trades figured at slightly above USD 150 per unit.
When the appearance happened in April 2021, shares fluctuated around USD 342 on NASDAQ, and since then, they have been decaying except for a figure seen in November of that same year.
Since Coinbase went public, expectations have grown among other entities in the crypto environment, pushing them to do something similar. In this sense, Kraken and Binance’s intentions in the US stand out; these companies also expressed purposes of listing their shares on the stock markets.
For outside investors, buying shares in Coinbase was a potentially less risky method to take advantage of the digital currency activity in the market than investing directly in a currency like or another digital asset, a behavior that alerted the regulators.
By: Jenson Nuñez
