Coinbase Is the Best Way to Play the Bitcoin Boom

Coinbase Is the Best Way to Play the Bitcoin Boom

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Coinbase Global



issued stock at an ideal moment“”the value of the cryptocurrency market has doubled in just the past two months, Bitcoin is booming, and institutional investors are scrambling to get in.

The stock made its market debut on Wednesday with a market capitalization of almost exactly $100 billion“”or 80 times its latest annual revenue. That is typically a big red flag for longer-term investors.

Coinbase



(ticker: COIN) is the real deal, however. It's a novel company with competitive advantages that have enabled it to increase market share despite fierce rivals.

The stock may falter in the next crypto downturn, but its current valuation does not look unreasonable. In fact, there is good reason to believe the stock could rise significantly.



Coinbase