And that's something we've argued they've needed to do. So we're very pleased with their willingness to, I think, get leaner.
I think really the question would be, is there another exogenous event that happens that drives volumes way back down below kind of what we're all modeling? And that could be a scenario where they could cut again. So at the current volumes that we're tracking in the industry, about $2 billion a day, as I mentioned, they're actually operating at about cash break-even at that level. And I think they're now in a much better position post these recent cuts to do that.īRIAN SOZZI: Do you see them having to cut again?ĭEVIN RYAN: So I think- just to give you some context here.
But ultimately, you know, the company does need to be in a position where a cash burn is lower and they can operate and weather any cycle.
And so I do think we're moving closer to that and that'll be a good thing. The uncertainty is worse than having certainty. But they do need to give better rules of the road for the industry to operate.Īnd so I actually think that is coming, and that's gonna add clarity, and be a good thing for firms like Coinbase. And regulators, ultimately, in our opinion, are not gonna crush the industry. You know, our view has been that- you know, really crypto's a- I think an industry where both the left and the right have views and can come together here. Isn't there this larger component still of regulation and what regulation comes forward to really thrust any type of confidence into the space?ĭEVIN RYAN: Yeah, so regulation is obviously a big question mark. So they're seeing actually a nice bump up there and that's driving much better revenues.īRAD SMITH: So in that stabilization story, it doesn't- there's still kind of have this larger component. And that compares about less than $1.6 billion in the fourth quarter. And Coinbase is seeing about $2 billion of volume a day in trading. And now that prices are moving back up, engagements there. So what that means is that people really didn't leave the market altogether, they just moved to the sidelines. And what's been really encouraging to us is the fact that, Julie, as you mentioned in the lead in, you know, market cap and crypto is up like 30% over the last three weeks. You know, you just need prices to recover and volumes to recover. And so they announced that about three weeks ago.Īnd then the other things are a little bit outside of their control. That's a huge deal to be in a position where they can weather really any environment. And we've been arguing, they need to get their cash burn down and they announced a 25% expense reduction. What do you think?ĭEVIN RYAN: Yeah, so it's really a couple of things. So I had just asked you what Coinbase has done to sort of right the ship here and make it well-poised, perhaps, to take advantage of any crypto rebounds. Devin, thanks for bearing with us there and glad we got your back. He is director of Financial Tech Research at JMP Securities, A Citizens Company. JULIE HYMAN: All right, let's bring back in Devin Ryan.
0 kommentar(er)
