Hi YXI friends,

Coinbased dropped by 15% after publishing its Q3 earnings, only to rally back 89% a week later as Trump won the Election.

Has COIN’s business fundamentals changed by 89% in a week? Or were investors simply too pessimistic? Is the stock due a pullback?

We will dive into Coinbase’s business breakdown, Q3 earnings, valuation, and price technicals in this report. By the end of the article, you should be able to make up your own mind on what to make of the stock.

DISCLAIMER: This newsletter is strictly educational. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice.

1. Coinbase: the first crypto exchange to go public in the US

Coinbase is the second biggest crypto exchange in the world, behind Binance. Although the trading volume on Coinbase is much smaller than Binance ($5.9 billion per day vs $42.5 billion), Coinbase enjoys the status of a publicly traded company with custodian services for the big money such as BlackRock.

While Changpeng Zhao, the CEO of Binance, spent four months in jail in California and Sam Bankman-Fried from FTX went to prison in Oklahoma, Brian Armstrong got married in October and can now celebrate that a pro-crypto Trump won the presidency.

2. Transaction, Subscription & Services

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