Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Private Capital Markets

<ul>
<li>Dunamu operates Upbit which is the largest cryptocurrency exchange in Korea. As of April 2022, Upbit had more than 70% market share in the cryptocurrency trading market in Korea.</li>
<li>Dunamu's sales surged by 1996% to 3.7 trillion won in 2021 and operating profit surged from 86.6 billion won in 2020 to 3.3 trillion won in 2021.</li>
<li>In January 2022, Dunamu was last valued Dunamu at nearly 15 trillion won. However, due to major decline in crypto prices in 2022, Dunamu's valuation has declined significantly. </li>
</ul>


Dunamu operates Upbit which is the largest cryptocurrency exchange in Korea. As of April 2022, Upbit had more than 70% market share in the cryptocurrency trading market in Korea.
Dunamu's sales surged by 1996% to 3.7 trillion won in 2021 and operating profit surged from 86.6 billion won in 2020 to 3.3 trillion won in 2021.
In January 2022, Dunamu was last valued Dunamu at nearly 15 trillion won. However, due to major decline in crypto prices in 2022, Dunamu's valuation has declined significantly. 


Dunamu: Operator of Upbit - The Number One Cryptocurrency Exchange in Korea

Insurance & Central Asia-focused Analyst, KT Capital Group

Alec Tseung

Insurance & Central Asia-focused Analyst

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

Equity Bottom-Up

<ul>
<li>Coinbase reported its first net loss since listing, as warned by the management before, due to both declining trading/transaction revenue and a continued increase in operating expenses.</li>
<li>Besides the impairment charges, the increase in Q1'22 operating expenses was mainly because of the headcount growth as Coinbase plans to further expand its business offerings this year.</li>
<li>Coinbase's earnings for the year will unlikely improve as the company sticks to the plan to make 2022 an investment year regardless of the downturns in the broader crypto markets. </li>
</ul>


Coinbase reported its first net loss since listing, as warned by the management before, due to both declining trading/transaction revenue and a continued increase in operating expenses.
Besides the impairment charges, the increase in Q1'22 operating expenses was mainly because of the headcount growth as Coinbase plans to further expand its business offerings this year.
Coinbase's earnings for the year will unlikely improve as the company sticks to the plan to make 2022 an investment year regardless of the downturns in the broader crypto markets. 


Coinbase Q1’22: A Deeper Look Into the Operating Expenses

<ul>
<li>Coinbase reported strong Q4 results mainly driven by a significant increase in its transaction revenue.</li>
<li>Bearish outlook in Q1'22 and FY22 due to the higher expense guidance from the management and declining crypto asset price and volatility in Q1.</li>
<li>Albeit the bearish outlook, we continue to view that Coinbase represents one of the best ways for public equity investors to gain exposure to the growing crypto economy. </li>
</ul>


Coinbase reported strong Q4 results mainly driven by a significant increase in its transaction revenue.
Bearish outlook in Q1'22 and FY22 due to the higher expense guidance from the management and declining crypto asset price and volatility in Q1.
Albeit the bearish outlook, we continue to view that Coinbase represents one of the best ways for public equity investors to gain exposure to the growing crypto economy. 


Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<ul>
<li>We said previously that we would remain positive on Monex until there were signs of a crypto currency breakdown. </li>
<li>That now appears to be happening and we are thus leery of the pure long trade here. </li>
<li>However, earnings trends are reasonable and we still like the name so we would examine hedging options.</li>
</ul>


We said previously that we would remain positive on Monex until there were signs of a crypto currency breakdown. 
That now appears to be happening and we are thus leery of the pure long trade here. 
However, earnings trends are reasonable and we still like the name so we would examine hedging options.


Monex – Bitcoin Breakdown Means This Needs a Hedge

<ul>
<li>
<a href="https://www.smartkarma.com/entities/coinbase-global-inc" target="_blank" data-smartkarma-citation="entities:32227:1" rel="noopener">Coinbase (COIN US)</a> has significant growth potential in non-transaction revenue with its crypto platform strategy and various initiatives underway.</li>
<li>This would also help the company move away from competing just on fees in the long run, although fee compression is unlikely to materialize in the medium term.</li>
<li>Using P/S ignores the company's profitability. On a P/E basis, the company's valuation looks reasonable compared to other major Fintech/payments peers.  </li>
</ul>



Coinbase (COIN US) has significant growth potential in non-transaction revenue with its crypto platform strategy and various initiatives underway.
This would also help the company move away from competing just on fees in the long run, although fee compression is unlikely to materialize in the medium term.
Using P/S ignores the company's profitability. On a P/E basis, the company's valuation looks reasonable compared to other major Fintech/payments peers.  


2022 High Conviction: Coinbase Is More Than Trading Coins

United States

Coinbase Global, Inc. provides financial solutions. The Company offers platform to buy and sell cryptocurrencies. Coinbase Global serves clients worldwide.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Coinbase Global (COIN US)

Dunamu: Operator of Upbit - The Number One Cryptocurrency Exchange in Korea

Dunamu operates Upbit which is the largest cryptocurrency exchange in Korea. Dunamu's sales surged by 1996% to 3.7 trillion won in 2021 and...

Douglas Kim

Coinbase Q1’22: A Deeper Look Into the Operating Expenses

A major reason why COIN reported weak Q1'22 earnings was also due to the increase in operating expenses. We will take a deeper look into the...

Alec Tseung

Coinbase: Q4 Results KPI Deck

Coinbase continues to represent one of the best ways for public equity investors to gain exposure to the growing global crypto economy.

Alec Tseung

Monex – Bitcoin Breakdown Means This Needs a Hedge

We said previously that we would remain positive on Monex until there were signs of a crypto currency breakdown. With that occurring we are leery...

Mio Kato

2022 High Conviction: Coinbase Is More Than Trading Coins

The fast development in the broader crypto economy could present significant growth potential to Coinbase (non-transaction revenue). This will...

Alec Tseung

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)