Bryn Talkington Adds To Coinbase Holdings, Expects Close To $8B In Net Income

Requisite Capital’s Bryn Talkington used Thursday’s volatility as an opportunity to add to her position in crypto exchange company Coinbase Global Inc COIN.

What Happened: During a segment of CNBC’s "Halftime Report," Talkington explained why she saw Coinbase’s recent dip in price as a good buying opportunity.

“I’m a big fan of Brian Armstrong, and I’m a big believer in the technology around cryptocurrencies,” she said.

Coinbase shares sold off by over 8% from a high of $280 earlier this week after the SEC threatened legal action over Coinbase’s upcoming yield product.

“I think what people need to understand is, you know, last quarter Coinbase did about $2 billion in revenues and I think $1.6 billion in net income. They also have $4.4 billion in cash,” said Talkington.

“If you look at their runway, this company is growing so fast. I think over the next year or so, you could see their net income for a year come in close to $8 billion.” 

The Requisite Capital Partner also highlighted the importance of Coinbase being granted regulatory approval to set up in Germany and Japan, which are “really big” crypto markets.

“I think it’s similar to when PayPal Holdings Inc PYPL announced it’ll now offer cryptocurrency; very accretive to their bottom line. I think it’s early days for Coinbase, so I just took the volatility yesterday to add to the position,” she said.

Price Action: Coinbase shares closed 2% lower on Thursday at a price of $256.42. In crypto markets, the leading digital asset Bitcoin BTC/USD was trading at $46,123 Friday. 

Photo: André François McKenzie on Unsplash.