Coinbase is giving some customers bitcoin worth $100 after sending them security-alert emails by mistake

Coinbase IPO
  • Coinbase is giving bitcoin credit worth $100 to customers who got an email alerting them to a security change in error.
  • Around 125,000 users were told their two-factor authentication settings had changed, sparking fears they had been hacked.
  • Coinbase is offering $100 in bitcoin to “some users” adversely affected, but did not specify how many.
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Coinbase is handing out bitcoin worth $100 to customers who took a hit after the crypto exchange mistakenly sent them a notification alerting them to a change in their security settings.

The alerts went out to about 125,000 of the crypto exchange’s users by email or text message, informing them that their two-factor authentication settings had been changed, Coinbase said on Twitter at the weekend.

As most people had not adjusted the setting themselves, this sparked fears among them that their accounts had been hacked. Such 2FA settings – an extra security measure to check people are authorized to access an account – can typically be reset only by the customers themselves.

In response to complaints, some people who got the notification will get $100 in bitcoin, Coinbase said on Reddit.

“To confirm, we are crediting a small number of users who were adversely affected by this incident with $100USD worth of BTC,” Coinbase said in a post to its support page subreddit.

The company has not specified how many customers make up that “small number,” and it did not respond to Insider’s request for comment. The cost to Coinbase if all 125,000 received the handout would be $12.5 million.

A bitcoin was worth $47,539.71 early Tuesday, according to CoinGecko data, so $100 would buy roughly 0.21% of a coin. Sev earl people said on Reddit and Twitter that they have received the credit to their Coinbase accounts.

Over the weekend, Coinbase said that the alert message was sent due to a problem with its notification system and not to malicious behavior. It said it had resolved the issue as soon as possible, and said it recognized the situation had hurt the trust of its customers.

“We’re laser focused on building trust and security into the crypto community so that the open financial system we all want is a reality. We recognize that issues like this can hurt that trust,” Coinbase said.

The crypto exchange went public earlier this year in a tumultuous direct listing, during which it debuted at $381, far above it’s $250 reference price, before tumbling as much as 19%. Shares were trading less than 1% lower at $260.80 on Tuesday morning.

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Coinbase jumps 6% after smashing Q2 revenue estimates as trading volumes surge – and as it reveals Elon Musk, Tesla, and SpaceX are clients

GettyImages 457582872
Coinbase CEO, Brian Armstrong.

  • Coinbase stock rose 6% on Wednesday after the crypto exchange smashed 2Q revenue estimates.
  • Quarterly revenue rose 27% on the year to $2.2 billion, compared with analysts’ forecast for $1.78 billion.
  • Elon Musk, Tesla, and SpaceX were listed as Coinbase clients, alongside 10% of the largest hedge funds.
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Coinbase stock rose as much as 6% in regular trading on Wednesday after the crypto exchange reported second-quarter earnings that crushed analyst expectations, boosted by a volatility-spurred jump in trading volumes.

The largest crypto exchange in the US posted total second-quarter revenue of $2.2 billion, of which $1.9 billion was transaction revenue and the remainder from subscriptions and services.

Here are the key figures:

Revenue: $2.2 billion versus $1.78 billion expected by analysts polled by Refinitiv

EPS: $3.45 per share versus $2.33 per share expected

Trading volumes: $462 billion versus $335 billion in the first quarter

Coinbase also revealed that it counts Elon Musk, Tesla, and SpaceX as clients, alongside as much as 10% of the top 100 largest hedge funds.

Tesla and SpaceX CEO Musk said in March that even dogecoin should be added to Coinbase, responding to a rumor that Tesla was buying its bitcoin on the platform. Coinbase eventually listed the meme-inspired asset in June.

Coinbase’s stock rose to as much as $284.48 at Wednesday’s market open, up from Tuesday’s closing price of $269.67.

The company said its quarterly profit was lifted by volatility in crypto-asset prices, as buyers and sellers made more trades to try to gain from the moves. This year, leading digital currencies bitcoin and ether have each declined over 45% after hitting all-time highs in the spring.

“As volatility and crypto-asset prices are highly correlated with trading revenue, the crypto market environment heavily influenced our Q2 financial results,” Coinbase said in a statement.

Ether represented 26% of the exchange’s total trading volumes, overtaking bitcoin with its share of 24%. Total retail trading volume came in at $145 billion, a 21% jump from the previous quarter.

Coinbase Q2

Coinbase said expanding interest in decentralized finance (DeFi) applications, non-fungible token (NFT) ecosystems, and the ethereum blockchain network’s 2.0 upgrade drove ether’s growth.

“We believe the products that the most crypto-forward people are using today such as DeFi will be used by mainstream customers soon, and by institutions soon after that,” the exchange said.

The number of retail users transacting at least once a month, known as MTUs, grew 44% from the first quarter to 8.8 million in the three months to June. But the tally dwindled along with trading volume in July as “volatility declined significantly relative to Q2 levels,” Coinbase said. With this in mind, the exchange expects trading volumes to be lower in the third quarter.

CEO Brian Armstrong said in an earnings call that Coinbase wants to be “the Amazon of assets” by listing every crypto asset that is legal. It added 22 new assets in the second quarter.

“There are thousands of them today. There are eventually going to be millions of them,” he said.

Read More: A 20-year-old crypto market-maker who skipped college breaks down his Reddit-inspired approach to trading – and outlines why he sees ether displacing bitcoin as the ‘king cryptocurrency’

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Coinbase jumps 4% after smashing Q2 revenue estimates as trading volumes surge – and as it reveals Elon Musk, Tesla, and SpaceX are clients

GettyImages 457582872
Coinbase CEO, Brian Armstrong.

  • Coinbase stock rose 4% on Wednesday after the crypto exchange smashed 2Q revenue estimates.
  • Quarterly revenue rose 27% on the year to $2.2 billion, compared with analysts’ forecast for $1.78 billion.
  • Elon Musk, Tesla, and SpaceX were listed as Coinbase clients, alongside 10% of the largest hedge funds.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Coinbase stock rose 4% in premarket trading Wednesday after the crypto exchange reported second-quarter earnings that crushed analyst expectations, boosted by a volatility-spurred jump in trading volumes.

The largest crypto exchange in the US posted total second-quarter revenue of $2.2 billion, of which $1.9 billion was transaction revenue and the remainder from subscriptions and services.

Here are the key figures:

Revenue: $2.2 billion versus $1.78 billion expected by analysts polled by Refinitiv

EPS: $3.45 per share versus $2.33 per share expected

Trading volumes: $462 billion versus $335 billion in the first quarter

Coinbase also revealed that it counts Elon Musk, Tesla, and SpaceX as clients, alongside as much as 10% of the top 100 largest hedge funds.

Tesla and SpaceX CEO Musk said in March that even dogecoin should be added to Coinbase, responding to a rumor that Tesla was buying its bitcoin on the platform. Coinbase eventually listed the meme-inspired asset in June.

Coinbase’s stock rose to as much as $279.36 in Wednesday’s premarket session, from Tuesday’s closing price of $269.67.

The company said its quarterly profit was lifted by volatility in crypto-asset prices, as buyers and sellers made more trades to try to gain from the moves. This year, leading digital currencies bitcoin and ether have each declined over 45% after hitting all-time highs in the spring.

“As volatility and crypto-asset prices are highly correlated with trading revenue, the crypto market environment heavily influenced our Q2 financial results,” Coinbase said in a statement.

Ether represented 26% of the exchange’s total trading volumes, overtaking bitcoin with its share of 24%. Total retail trading volume came in at $145 billion, a 21% jump from the previous quarter.

Coinbase Q2

Coinbase said expanding interest in decentralized finance (DeFi) applications, non-fungible token (NFT) ecosystems, and the ethereum blockchain network’s 2.0 upgrade drove ether’s growth.

“We believe the products that the most crypto-forward people are using today such as DeFi will be used by mainstream customers soon, and by institutions soon after that,” the exchange said.

The number of retail users transacting at least once a month, known as MTUs, grew 44% from the first quarter to 8.8 million in the three months to June. But the tally dwindled along with trading volume in July as “volatility declined significantly relative to Q2 levels,” Coinbase said. With this in mind, the exchange expects trading volumes to be lower in the third quarter.

CEO Brian Armstrong said in an earnings call that Coinbase wants to be “the Amazon of assets” by listing every crypto asset that is legal. It added 22 new assets in the second quarter.

“There are thousands of them today. There are eventually going to be millions of them,” he said.

Read More: A 20-year-old crypto market-maker who skipped college breaks down his Reddit-inspired approach to trading – and outlines why he sees ether displacing bitcoin as the ‘king cryptocurrency’

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Riot Blockchain, Coinbase, and other cryptocurrency stocks gain as bitcoin nears $40,000

Bitcoin 2021
Bitcoin 2021

  • Stocks tied to the cryptocurrency space jumped in early morning trading Monday as bitcoin rallied near $40,000.
  • Bitcoin rallied to its highest point in over two weeks after Elon Musk tweeted Tesla would accept payment in crypto once mining uses cleaner energy.
  • Mining stocks Riot Blockchain, Marathon Digital Holdings, and Bit Digital jumped.
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Stocks tied to the cryptocurrency space jumped in early morning trading Monday as bitcoin rallied near $40,000.

Mining stocks Riot Blockchain and Marathon Digital Holdings climbed 8.19% and 7.7%, respectively. Meanwhile, cryptocurrency exchange Coinbase was up 2.8%.

Cryptocurrency stocks often move in tandem with bitcoin’s price. Bitcoin hit $39,746 on Monday – the highest point in over two weeks – after Elon Musk tweeted Tesla would accept the cryptocurrency as payment again once the energy used for mining shifts to more sustainable sources.

“When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions,” the electric-vehicle maker CEO said in a tweet.

Bitcoin was trading 9.44% higher around $39,310 on Monday as of 8:30 a.m. ET.

Other crypto-focused names were trading higher Monday, with blockchain technology company Ebang holdings up 4.12% and mining company Bit Digital up 5.43%.

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Coinbase could jump 36% as it is the best way to invest in the cryptocurrency ecosystem, Goldman Sachs says

Coinbase IPO
  • Coinbase could surge 36% as it’s the best way to invest in the cryptocurrency ecosystem, Goldman Sachs said in a note on Monday.
  • The bank initiated Coinbase at a Buy rating with a $306 price target.
  • “The continued success or failure of cryptocurrencies as an asset class will inevitably determine COIN’s longer-term fate,” Goldman said.
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Shares of Coinbase Global could surge 36% to $306 as the crypto-exchange platform represents the best way for investors to gain exposure to the crypto ecosystem, Goldman Sachs said in a note on Monday.

The bank admits that much of Coinbase’s long-term trajectory will be determined by the success of failure of cryptocurrencies as an asset class, but believes the company represents “a blue-chip way through which to invest in the development of the ecosystem,” according to the note.

Coinbase’s crypto ecosystem is powered by its careful approach to regulatory compliance, its crypto-native technology stack and deep talent pool, and its role as an innovation hub for new crypto endeavors, Goldman said.

“While we believe the core business today offers an attractive growth profile with the potential to drive high levels of profitability, we see significant white space for new initiatives to drive more stable and recurring revenue streams to complement the core trading business over the longer term,” Goldman explained.

That “white space” Goldman references includes exposure to innovations in DeFi, or decentralized autonomous blockchain applications, stablecoin-based payments, and the adoption of non-fungible tokens, or NFTs.

“If meaningful parts of the economy can transition to blockchain and crypto-native technology over time, we see significant opportunity for COIN to benefit from its status as a critical element of the financial infrastructure for the ecosystem,” Goldman said.

In the meantime, continued user growth should drive strong growth in transaction revenues over time, which currently represent about 96% of Coinbase’s annual revenue.

Shares of Coinbase have performed poorly since its direct listing in mid-April, which coincided with a top in the price of bitcoin. Coinbase is down 48% from its all-time high of $429.54, based on Friday’s closing price. Shares were up more than 2% in Monday morning trades.

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Coinbase stock could climb 22% as the company is a ‘one-stop shop’ crypto ecosystem, Wedbush says

coinbase direct listing
People watch as the logo for Coinbase Global Inc, the biggest U.S. cryptocurrency exchange, is displayed on the Nasdaq MarketSite jumbotron at Times Square in New York, U.S., April 14, 2021.

  • Wedbush tagged Coinbase with an “outperform” rating and $275 price target on Wednesday, which would be a 22% increase from Wednesday’s close.
  • Analysts led by Moshe Katri said the company is a “one-stop shop” crypto ecosystem.
  • Katri laid out four reasons why he believes Coinbase stock is set to outperform.
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Coinbase stock could climb 22% from current levels because the company is a “one-stop shop” crypto ecosystem, according to Wedbush analysts.

In a note to clients on Wednesday, analysts led by Moshe Katri initiated coverage on Coinbase Global with an “outperform” rating and a $275 price target.

The price target represents a potential 22% increase from Wednesday’s closing price of $224.80.

We view COIN as a “one-stop shop” platform, enabling roughly 56MM retail users, 8,000 institutions, and 134,000 ecosystem partners in over 100 countries to participate in the crypto economy,” Katri wrote.

Katri and a team of Wedbush analysts went on to describe four factors that give them confidence in Coinbase stock moving forward.

First, they detailed Coinbase’s “first-mover” advantage. The analysts said that Coinbase is the “default starting place for new user journeys into the crypto economy” and noted that over 90% of retail users enter the platform organically or through word-of-mouth.

The second factor that the Wedbush analyst said gives them confidence in Coinbase is the company’s dominant and growing share of crypto assets.

According to Coinbase’s SEC filings, the company holds 11.3% of the entire crypto market capitalization.

The third factor that Wedbush’s Katri highlighted in his note to clients was the integration of blockchain technology and traditional finance on Coinbase that enables cryptocurrencies to become part of the payments eco-system.

According to Wedbush, COIN “creates trusted and easy-to-use products, crypto assets that can be dynamically transmitted, stored, and programmed to serve the needs of an increasingly digital and globally interconnected economy.”

Finally, Wedbush analysts highlighted the growing diversification of revenue streams at Coinbase as a bullish factor for the stock.

Coinbase has moved to create an entire web of ancillary services tied to the crypto market. For example, customers can now borrow cash using bitcoin as collateral on the platform.

Wedbush’s analysts also noted that in the first quarter, on average, 25% of retail users who invested in cryptocurrencies on Coinbase also engaged with at least one non-investing product.

The Wedbush team arrived at its $275 price target for Coinbase by using a 22.7x multiple on 2022’s earnings, assuming a 20% growth rate for revenue and EPS.

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Coinbase slips to lowest point since its debut as bitcoin plunges below $50,000

coinbase direct listing
People watch as the logo for Coinbase Global Inc, the biggest U.S. cryptocurrency exchange, is displayed on the Nasdaq MarketSite jumbotron at Times Square in New York, U.S., April 14, 2021.

  • Coinbase slid to a record low Friday, extending losses for a fifth day in a row amid a plunge in bitcoin’s price.
  • The cryptocurrency exchange fell 3.87% to as low as $282.07, about a 14% drop from its first day of trading last week.
  • Mizuho initiated coverage of Coinbase with a “neutral” rating and price target of $285.
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Coinbase slid to a record low Friday morning, extending losses for a fifth day in a row amid a plunge in bitcoin’s price.

The cryptocurrency exchange fell 3.87% to as low as $282.07, about a 14% drop from the price on the close of its first day of trading on public markets last week.

Meanwhile, Bitcoin slid below $50,000 on Friday, and simultaneous drops in other digital currencies erased $260 billion off the total value of the cryptocurrency market.

Coinbase’s stock is heavily tied to bitcoin’s price and a “perfect storm” of recent news is likely dragging down both the cryptocurrency and the exchange, said Dan Dolev, Mizuho Securities Senior Analyst, FinTech Equity Research.

The analyst noted that President Biden’s plan for the US to achieve net-zero emissions in the next few decades is likely weighing on bitcoin’s price given the environmental concerns with mining the coin. And, more countries are tightening regulation, including Turkey’s central bank, which is banning the use of cryptocurrencies.

Dolev and Mizuho Associate Ryan Coyne initiated coverage of Coinbase on Wednesday with a price target of $285 and a “neutral rating.”

Dolev told Insider Friday morning that he didn’t anticipate the stock to slide near his price target so quickly. When he initiated coverage on Wednesday, Coinbase was hovering around $320 a share.

Over 80% of Coinbase’s total revenue is reliant on retail transaction fees, and that could pose a risk for Coinbase down the road if other competitors like PayPal and Cash App, whose profits rely less on transaction fees, move to zero-commission trading, Dolev and Coyne said in their Coinbase note.

The analysts conducted a survey of nearly 400 individuals that use either Cash App, Venmo, PayPal, Coinbase, Robinhood, or Chime or some combination of these services in November 2020. The survey found that 55% of Bitcoin traders across Coinbase, PayPal, and Cash App consider low transaction fees as the second most important quality of crypto trading app platforms, right behind security.

In a phone call with Insider Friday morning, Dolev said: “They’ve done a great job, but that reliance on the retail trading fee is a real concern because we know how it ended when it comes to equity commissions.”

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Coinbase could jump 21% due to growth in the ‘cryptoeconomy’ and buy in from institutional investors, CFRA says

coinbase direct listing
People watch as the logo for Coinbase Global Inc, the biggest U.S. cryptocurrency exchange, is displayed on the Nasdaq MarketSite jumbotron at Times Square in New York, U.S., April 14, 2021.

Coinbase could surge 21% due to the growing “cryptoeconomy” and a push to lure in more institutional clientele, CFRA Research says.

In a note to clients on Friday, CFRA analysts led by Chris Kuiper, CFA, initiated coverage on shares of Coinbase with a “buy” rating and a $400 12-month price target.

The price target represents a potential 21% jump from Monday’s intraday low of $330 per share.

Kuiper and his team said they believe Coinbase could exceed the Street’s high expectations given the growth potential of the “cryptoeconomy.” The analysts see Coinbase becoming one of the largest financial exchanges worldwide and are betting institutional clients will take note.

“Our base case scenario implies COIN not only becomes one of the largest financial exchanges for crypto but that it is also successful in diversifying into other products and services, most notably those aimed at institutional investors, an area it has more aggressively pursued over the past two years,” Kuiper wrote.

Kuiper and his team also presented earnings per share estimates of $6.89 for 2021 and $3.00 for 2022 in their note to clients and said they see operating margins ramping and then stabilizing at 35%.

In a separate thematic research note that was also released on Friday, CFRA highlighted Coinbase’s push for institutional clients, saying the group is seeking to build a “one-stop-shop” for institutions to access the crypto markets.

CFRA analysts laid out three scenarios for Coinbase’s shares, a bear case where the company trades at $120, a base case where the firm hits $400, and a bull case where shares could rise as high as $840 per share.

The bull case implies a potential 145% jump in share prices over the next year amid a push for crypto from institutions. It also assumes a CAGR of 36% for the next decade, slightly below Amazon’s 40% CAGR from 1998 to 2009, and puts Coinbase’s revenue north of $19 billion by 2027.

CFRA analysts are definitely bullish on the prospects of Coinbase after its historic direct listing.

Coinbase went public on Wednesday of last week and saw its shares open at $381. However, the crypto exchange’s stock then sank as much as 19% in opening day trades, before recovering to end the week at $342.

Some market commentators have called the Coinbase public listing a “watershed moment” for the crypto community. Coinbase is now worth more than General Motors, FedEx, and Twitter.

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Coinbase climbs 6% after Cathie Wood’s ARK funds show $246 million investment in the crypto exchange

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Brian Armstrong, founder and CEO of Coinbase; Cathie Wood, founder and CEO of ARK Invest.

  • Shares of Coinbase rose as much as 6% on Thursday, following its turbulent trading debut.
  • Three of famed investor Cathie Wood’s funds snapped up close to $250 million worth of shares.
  • At Coinbase’s closing price on Wednesday of $328.28 per share, ARK holdings are worth about $246 million.
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Shares of Coinbase climbed as much as 6% on Thursday following its debut on the Nasdaq on Wednesday, after various funds managed by Cathie Wood’s ARK Invest snapped up around $250 million worth of shares.

The stock pared gains in early trading, rising 1.1% to $331.75 at 10:35 a.m. in New York.

The Ark Innovation ETF, Ark Fintech Innovation ETF, and Ark Next Generation ETF together bought a total of 749,205 shares of the cryptocurrency exchange during its much-anticipated debut, according to daily fund trading summary data on the fund’s website.

While Tesla remains the top holdings of two of its funds – ARKW and ARKK – the star stock picker sold around $170 million shares of the electric car company, which is also known for its bitcoin exposure. Tesla in February invested $1.5 billion in the popular cryptocurrency.

Coinbase, the largest cryptocurrency exchange in the US, opened at $381, spiked to $429, then tumbled below its debut price, even dipping as low as $310.

Still, at Wednesday’s close, it was worth more than major companies such as GM, FedEx, and Twitter

The listing of Coinbase was celebrated by many cryptocurrency bulls who view the move as a milestone for the digital currency ecosystem that has long faced scrutiny and skepticism.

“Coinbase’s direct listing on Nasdaq is a major step forward in bringing legitimacy and mainstream awareness to the digital asset sector as a whole,” Brad Kam, co-founder of Unstoppable Domains, told Insider.

“For the next billion cryptocurrency users, it will be critical that we focus on ease of use. Millions in funds have been lost due to typos in hard-to-read wallet addresses or simply sending the wrong coin to the wrong wallet,” he said.

Read more: Bitcoin is a headache to store, and that’s created an investment opportunity that could theoretically pay determined traders big risk-free returns by December

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2 Coinbase execs are worth nearly $1 billion after barely a year at the crypto company as its direct listing showers wealth on employees

Surojit Chatterjee, Coinbase Chief Product Officer
Coinbase chief product officer Surojit Chatterjee (left) has a stake in the company worth $657 million. CEO Brian Armstrong (right) has a stake worth $13 billion.

Coinbase, one of the world’s most popular and earliest cryptocurrency exchanges, made its public market debut on Wednesday, riding the wave of mainstream investors’ growing interest in digital currencies.

Coinbase’s highly anticipated direct listing resulted in its shares closing at $328.28 on Wednesday, giving the company a valuation of $85.7 billion – around 10 times what it was last valued at as a private company, according to PitchBook.

That’s up 31.3% from Coinbase’s reference price of $250. But because it opted for a direct listing, no shares traded at that price, instead opening at a price of $381.

Still, as Coinbase’s valuation soared, its top executives and biggest investors got substantially richer.

CEO and cofounder Brian Armstrong’s stake – 2.75 million Class A shares and 36.9 million Class B shares – is now worth a combined $13 billion.

Two Coinbase executives, Chief Product Officer Surojit Chatterjee and Chief Legal Officer Paul Grewal, both of whom joined the company less than 15 months ago, have stakes worth a combined $957 million.

At Wednesday’s closing price, Chatterjee’s 2 million Class A shares are worth $657.2 million, while Grewal’s 915,331 Class A shares are worth $300 million.

Chatterjee joined Coinbase in January 2020 after having previously been at Google for 11 years. Grewal joined just last summer, leaving his four-year tenure as a vice president and deputy general counsel at Facebook.

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