Coinbase (COIN) has recently cut more than 1,000 jobs, representing 18% of its global workforce. You might think that the layoff is a sign that Coinbase is shrinking its operations due to a falling crypto market, but you would be wrong. The company is actually expanding its business.
Coinbase operates a crypto trading platform. It has grown to become one of the largest crypto exchanges in the U.S. Its main competitors are Binance, FTX, Kraken, and Gemini.
Focus Is on International Growth
Coinbase has relied heavily on the U.S. market for a long time, which is about to change now. The company wants international markets to account for the majority of its business in the future. As a result, it is embarking on an aggressive overseas expansion.
With a presence in the UK, Ireland, and Germany, Coinbase is seeking licenses to operate in additional countries in Europe. The company has set its sight on France, Italy, Spain, Switzerland, and the Netherlands in its next phase of expansion in Europe, according to a Bloomberg report.
Nana Murugesan, Coinbase’s Vice-President of Business Development and International, has revealed that the goal is to build the international segment into a significant business. Coinbase also plans to have a regional manager for its European operations.
Expansion in Difficult Times
Crypto prices have crashed across the board as investors have sought to cut exposure to risky investments in the current uncertain economic environment. As a result, Coinbase stock has also dropped sharply, more than 80% year-to-date.
However, Coinbase has the experience of expanding its business in tough times. For example, the crypto was in a big bear market in 2015-2016 when Coinbase entered Europe, with its first stop in the UK. Looking back, the bet has paid off significantly, Coinbase’s international executive Murugesan said, according to CNBC.
As it makes the international push, Coinbase remains open to strategic acquisitions that could accelerate its global expansion.
Wall Street’s Take
According to TipRanks, the Street has a Moderate Buy consensus rating on the stock based on 14 Buys, four Holds, and two Sells. Coinbase’s average price target of $131.61 implies nearly 180% upside potential to current levels.
TipRanks data shows that financial bloggers are 75% Bullish on COIN, compared to the sector average of 65%.
Many of Coinbase’s major rivals such as Binance and FTX already have greater international exposure. For Coinbase, its currently limited overseas presence may indicate a huge international growth opportunity.
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