Coinbase reportedly seeking another $40-60 million in funding, implying valuation of $400 million
Coinbase is seeking $40-60 million in additional funding, according to Re/code, citing unnamed sources. Such an investment would bring the company's valuation to $400 million.
TechCrunch, also citing unnamed sources, says the company was seeking as much as $150 million. There is speculation that they lowered the figure because of investor unease over the regulatory climate, particularly in the US. Further speculation links Coinbase's diversification into Europe to such concerns.
TechCrunch's sources also say that Bitcoin's price Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term and recent underperformance is making investors uneasy. However, Coinbase's business model apparently functions independent of bitcoin prices. When a merchant accepts bitcoin for payment and has it converted to fiat, any applicable commissions are levied based on the dollar value of the sale. Perhaps investors are concerned that prices will decline further, to the point reflecting uncertainty in Bitcoin's future as a payment system.
It is also possible that investors are accounting for the return-on-investment (ROI) issue. Despite its popularity- Coinbase now hosts over 2 million wallets- the company's ability to adequately monetize its offerings comes into question. The same can be argued for numerous other similar services, such as Circle, Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term and Xapo- and perhaps another appropriate analogy to the early days of the internet and its publicly traded companies.
Coinbase's wallets are free, as are merchant conversion fees for the first $1 million in sales. Thereafter, 1% is charged. Although over 37,000 merchants are supported, Coinbase's revenues hinge upon their bitcoin-based sales volume.
It may be risky for Coinbase to increase their fees in an effort to increase revenues. This would lessen their value-add over the payment systems they're competing with, such as credit cards.
Coinbase is seeking $40-60 million in additional funding, according to Re/code, citing unnamed sources. Such an investment would bring the company's valuation to $400 million.
TechCrunch, also citing unnamed sources, says the company was seeking as much as $150 million. There is speculation that they lowered the figure because of investor unease over the regulatory climate, particularly in the US. Further speculation links Coinbase's diversification into Europe to such concerns.
TechCrunch's sources also say that Bitcoin's price Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term and recent underperformance is making investors uneasy. However, Coinbase's business model apparently functions independent of bitcoin prices. When a merchant accepts bitcoin for payment and has it converted to fiat, any applicable commissions are levied based on the dollar value of the sale. Perhaps investors are concerned that prices will decline further, to the point reflecting uncertainty in Bitcoin's future as a payment system.
It is also possible that investors are accounting for the return-on-investment (ROI) issue. Despite its popularity- Coinbase now hosts over 2 million wallets- the company's ability to adequately monetize its offerings comes into question. The same can be argued for numerous other similar services, such as Circle, Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term and Xapo- and perhaps another appropriate analogy to the early days of the internet and its publicly traded companies.
Coinbase's wallets are free, as are merchant conversion fees for the first $1 million in sales. Thereafter, 1% is charged. Although over 37,000 merchants are supported, Coinbase's revenues hinge upon their bitcoin-based sales volume.
It may be risky for Coinbase to increase their fees in an effort to increase revenues. This would lessen their value-add over the payment systems they're competing with, such as credit cards.