According to Owen Lau, a research analyst, Coinbase’s Ventures portfolio may be valued up to $6.6 billion. Currently investments aren’t monetarily contributing to the exchange. But they are “strategically vital to the corporation.” He emphasised that their significance stems from the fact that these investments benefit the greater bitcoin ecosystem and provide insight into new technology. According to Oppenheimer, the Nasdaq-listed exchange invested in over 250 firms during the fourth quarter of last year, with a carrying value of $352 million at cost basis.
According to the Coinbase Ventures website, the exchange has invested in DeFi money market protocol, Compound, crypto lender BlockFi, Ethereum blockchain explorer Etherscan, leading non-fungible token (NFT) marketplace OpenSea, and a number of other industry leaders.
Lau stated that in their sensitivity study, the market value might reach $17.0 billion if a 13 percent ownership position is assumed. Given the ongoing capital inflow into blockchain and digital assets, the projection may be revised upward. The analyst rates COIN shares as outperform, with a $377 price target. He also stated that the stock price of Coinbase may be impacted in the short term by the price of bitcoin and macroeconomic forces.
Coinbase is one of the world’s major cryptocurrency exchanges and is frequently used to evaluate institutional interest in the cryptocurrency field. BTC whales withdrew almost $1.1 billion in bitcoin from the exchange earlier this month in three transactions, indicating long-term stockpiling. Coinbase blacklisted 25,000 wallet handles associated with Russian people or businesses it believes are involved in illegal behaviour earlier this month. The addresses were restricted due to concerns that they may have been used to circumvent sanctions imposed on Russia for its invasion of Ukraine.