SummaryIn the recent second quarter, retail transaction revenues represented 77% of Coinbase's total revenues.Compared to Q1, Monthly Transacting Users were down 2%, but more importantly, the mix shift from trading activity to staking activity hurt average transaction revenue per user.COIN has a backstop in terms of valuation from its $3.15 billion 2021 EBITDA.Including crypto investments, total capital resources total $6.58 billion. Coinbase has about $670 million in current liabilities and $3.39 billion in conservatively financed long-term debt.Coinbase does not have financing exposure to Three Arrows Capital (3AC), Celsius or Voyager. Luna was not a supported asset.Because of its short public life, one probably can't argue that Coinbase (COIN) should be a core holding for digital asset allocations. But the company provides a unique and somewhat moated position in, and representation of, the crypto space. And despite the $1.09 billion headline loss in the second quarter and the ever mounting SEC legal woes, Coinbase's strengths are geared toward combating its current threats.As detailed below, Coinbase has positioned themselves to represent trust, a concept not forefront for the digital asset industry. This lack of trust is especially true among those looking to enter the space. Of course digital assets generally operate in an environment that does not require trust. And cryptos are often described as "trustless", which does...
