Monday, 12 April 2021

A Analysis

Tuesday, 17 June 2014 00:00

Wall Street Should Be First To Invest In Reggie Middleton's UltraCoin, Much Of It Won't Be Here In 10 Years! Featured

Written by
Rate this item
(1 Vote)

 

In continuing my PSA on well funded bitcoin startup valuations (reference Imy valuation estimate of Bitpay, a rapidly growing payment processor), I bring a forensic analysis and valuation of Coinbase, likely the 2nd largest money exchanger in the bitcoin business.

 Valuation Case 2- COINBASE

Revenues for Coinbase is calculated based on global monthly transaction size (US$) of the company. Annualizing the transaction resulted in Total transactions for 2014  

As per the information available, Coinbase charges 1% as transaction fee resulting in the revenue of the company.    

Table 3- Revenue Forecast, US$

 
 

2014F

2015F

2016F

 

Annual Transactions*, US$

1,085,488,973

     1,248,312,319

     1,435,559,166

 

Transaction Fee (%)

1.0%

1.0%

1.0%

 

Total Revenue

        10,854,890

    12,483,123

    14,355,592

 

*Growth assumed under moderate scenario

 

As per the news for funding in Coinbase, the valuation of Coinbase ranged between US$140 million – US$1 billion. Based on weighted average (by applying 70% weight to the lower figure in the range), the above valuation is derived at US$398 million. Applying the multiples at which Bitpay and Circle are estimated to have been funded recently (using average revenue multiple of Bitpay and Circle), the valuation based on 2015 and 2016 revenues is as shown below:

Table 4- Relative valuation

Particulars

2015F

2016F

Revenue ($)

    12,483,123

    14,355,592

Multiple Comparable- Bitpay and Circle

16.0x

13.5x

Valuation (US$mn)

                      200.31

                      194.23

 

Of course, we feel that these rapidly growing payment processor companies, although now profitable and expanding their reach like weeds, are barely touching the tip of what the Bitcoin industry will look like just two years into the future. 

Wall street, pay attention!!!

Veritaseum short summmary pic - public.docx Page 01

Veritaseum short summmary pic - public.docx Page 02Veritaseum short summmary pic - public.docx Page 03Veritaseum short summmary pic - public.docx Page 04

See also:

  1. Payment Processors, Patents and a Dollop of Healthy Paranoia
  2. Margin Compression Is Coming in the Payment Processing Space As $100 Million Pours Into Startups
  3. Bitcoin Myth Busting 101

 

Read 6470 times Last modified on Tuesday, 17 June 2014 13:08

Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.

My Twitter Updates

From TweetDeck
ReggieMiddleton @Silver_Antidote @HEXcrypto I have no problem with you sharing your opinion with me, but 20 intertwined tweets woul… https://t.co/INb8jJ98FF
Less than a minute ago
From TweetDeck
ReggieMiddleton @Silver_Antidote @HEXcrypto I skimmed through your comments, & It doesn't seem as if you have malignant intent, but… https://t.co/z4BR3OqmuD
Less than a minute ago

Right add

Newsletter

Tell Us What You Think

Which forensic research are you most apt to buy?
Right add (2)

Contact

Veritaseum

1-718-407-4751

info@veritaseum.com