Coinbase Review, Additional Disclosures and CEO’s Tweet Are Misunderstood

Analysts at Oppenheimer provided their views of Coinbase Global, Inc.(NASDAQ:COIN) after conducting due diligence and reviewing the company's latest 10Q and industry information. The analysts believe that the additional disclosures and the tweet from CEO Brain Armstrong are grossly misunderstood and being taken out of context.

According to the analysts, this additional disclosure is required by the new SAB 121 instituted in March 2022, and shouldn't be interpreted that the company is at risk of bankruptcy. In fact, Coinbase’s CEO made it clear that the company "has no risk of bankruptcy". Additionally, while the turbulence in TerraUSD caused uncertainty in the system, it drove higher trading volume for Coinbase in recent days.

According to the analysts, shares appear to trade at a distress level, but the company's fundamentals remain strong and long-term crypto adoption remains intact, providing an attractive entry point for long-term investors.

As of Q1/22, the company had $6.1 billion in cash and $2.7 billion of net cash. Even under a prolonged stressful scenario, it can easily absorb the maximum adjusted EBITDA loss of $500 million this year.