Due to the latest introduction of bitcoin futures, renewed efforts for bitcoin ETF approvals, and fresh bitcoin/FOREX currency pairs suggested by Build up Caudal (GCAP), Coinbase is facing enhanced competition.
Bitcoin And Coinbase Fuel Growth At Metropolitan Canap Holding Corp.
Dec. Legitimate, 11:02 AM • mcb
Metropolitan Handelsbank Holding Corp. directly benefits from growth at Coinbase.
MCB is the only stock market investment that is tied to the growth and success of Coinbase.
Coinbase uses MCB for wire transfers, deposits, and the Shift bitcoin debit card.
Bitcoin futures are here, but bitcoin investment options for most investors are still limited. Not many retail brokers are suggesting bitcoin futures, and a bitcoin ETF is most likely still a long way off. Due to the lack of bitcoin-related stock market options, investors are presently pursuing stocks like Riot Blockchain (RIOT), Xunlie Limited (XNET), Marathon Patent Group (MARA), U.S. Universal Investors (NASDAQ:GROW), Seven Starlets Cloud Group (NASDAQ:SSC), Social Reality (SRAX), and Overstock.com (OSTK). Every stock on this list has surged at least 100% due to bitcoin. Excluding Overstock, wij think the surplus of the stocks on this list are overvalued and will not directly benefit from the increase te price and popularity of bitcoin. Metropolitan Canap Holding Corp. (MCB) is uniquely placed to directly benefit, te the form of revenue and profit growth, from bitcoin price increases and Coinbase customer growth.
Albeit Coinbase does not disclose banking relationships, Coinbase incoming wire transfers are sent to MCB, and the Shift bitcoin debit card suggested to Coinbase customers is an MCB product. The Shift card wasgoed introduced by Coinbase te November of , so wij know that the MCB/Coinbase banking relationship is at least Two years old.
MCB is a latest IPO and has only reported one quarter spil a public company. For the 3rd quarter of , MCB reported strong growth te netwerken income, total assets, and total deposits:
- Televisiekanaal income $Three.8 million, up 165% from Q3
- Total assets $1.7 billion, up 57% from Q3
- Total deposits $1.Five billion, up 61% from Q3
MCB is growing at a torrid rhythm. It is uncommon for a petite bankgebouw like MCB to voorstelling growth metrics of this magnitude. Albeit the Q3 8-K does not mention bitcoin or Coinbase, the timing and magnitude of thesis growth metrics suggest that MCB’s relationship with Coinbase is driving this explosive growth. Bitcoin’s latest rise te popularity and price began ter Q1 of , but indeed began to accelerate te Q2 and Q3. By the end of Q3, bitcoin had gained 410% year to date. Coinbase growth followed a similar trajectory. The very first reports of rapid growth commenced te July of when Coinbase added 1 million fresh users ter 1 month. Albeit it is possible that MCB’s rapid growth te the very first Trio quarters of wasgoed driven by non-Coinbase activity, it seems probable due to the timing of the Coinbase growth and MCB growth that MCB’s growth wasgoed driven by bitcoin and Coinbase.
Now that wij have established the apparent correlation inbetween MCB growth and Coinbase growth, let’s see how this might influence MCB’s 4th quarter. Bitcoin wasgoed trading at $Four,200 on September 30th at the end of MCB’s 3rd quarter. With bitcoin now trading at $16,500, the entire cryptocurrency industry has switched dramatically ter latest months. No company benefits more from bitcoin’s explosive price increase than Coinbase. Spil the largest US-based cryptocurrency exchange, Coinbase is likely the fastest growing company ter the US right now. Te the last Two months, Coinbase has added 100,000 customers vanaf day, numerous times. Coinbase very likely has about 14 million customers now (extrapolation of current growth rates), up from about Ten million at the end of MCB’s 3rd quarter. Te Q3, MCB reported an increase of $565 million ter deposits compared to Q3 of . Given the relationship with Coinbase and the timing of the increase, let’s assume Coinbase accounted for about 50% of the $565 million te extra deposits. That’s about $280 million te deposit increases from Coinbase. During Q4, bitcoin price increases and Coinbase customer adds truly embarked to take off. Albeit the total $ value of Coinbase accounts is unknown, GDAX (the Coinbase exchange) has recently averaged about $1.Trio billion a day te cryptocurrency trading. This volume is up from an promedio of about $300 million ter Q3. The 400% bitcoin price increase, combined with the massive increase ter USD denominated trading, could result te a quarterly deposit increase larger than the previous $280 million yearly increase. Add the reserve Four million Coinbase customers and MCB could see a 50+% sequential increase te deposits compared to Q3.
Te addition to the Coinbase relationship, MCB has an chance to become a banking leader ter the cryptocurrency space. Many crypto-related start-ups are still looking for banking vrouwen. Jamie Dimon’s latest bitcoin comments demonstrate that most big banks are not willing to provide banking services for bitcoin or cryptocurrency start-ups. It is not clear if this reluctance is due to regulatory concerns or if the banking establishment is worried about the widespread adoption of alternative currencies. Either way, MCB has an established relationship with Coinbase, and it is likely that many other start-ups ter the space are presently attempting to obtain a banking relationship with MCB.
Coinbase is a large company that is growing larger every day. Coinbase presently banks with MCB, utilizes MCB for wire transfers, and offers clients MCB’s Shift bitcoin debit card. However, the success and size of Coinbase could lead the company to find extra and/or other banking options. Albeit Coinbase is a hugely successful company, it still is not clear if the traditional big banks are presently willing to provide banking services for cryptocurrency start-ups. Those of you who have followed the cryptocurrency space for a long time will recall that integration with the traditional banking system has proven to be a difficult task for most bitcoin startups. Many exchanges and bitcoin payment services failed due to lack of banking support and inability to connect to the legacy banking system. Coinbase wasgoed the very first US bitcoin exchange to permit meteen deposits from most US banks. Spil the cryptocurrency space expanded, investors flocked to Coinbase because of security (Coinbase has never bot hacked), regulatory approval, and the ease of rechtstreeks deposits and withdrawals from US banks provided by Coinbase. From this perspective, MCB may have significantly contributed to the success of Coinbase by providing banking services that other banks would not provide. Considering this history and the mutual success of both companies, wij think it is likely thesis companies will proceed their banking relationship, and both companies will benefit from the explosive growth of bitcoin and other cryptocurrencies.
Due to the latest introduction of bitcoin futures, renewed efforts for bitcoin ETF approvals, and fresh bitcoin/FOREX currency pairs suggested by Build up Caudal (GCAP), Coinbase is facing enhanced competition. However, Coinbase is presently liking a significant very first mover advantage, and wij think growth rates at Coinbase will remain strong for at least a few years.
The latest pullback ter MCB (from an intraday high of $51 to a current price of $44) represents a superb buying chance. If Coinbase wasgoed presently public, it would likely be the greatest stock on the street. MCB is presently the only way for investors to benefit from the explosive growth at Coinbase. Strong buy.