Coinbase beats by nearly $500M, but investors aren’t buying it

Happy Monday! We’re back at it with what you missed this weekend, including notes on Bitcoin dominance, Coinbase’s historic

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Monday morning opens

"I sold my Coinbase."

That’s how my mom greeted me on the phone this past Saturday, recounting how Coinbase failed to break higher highs after announcing its stellar Q4 2024 revenue. She decided to drop it, looking for another stock in her Schwab account with more growth potential. What gives?

For many investors, we’re conditioned to think of assets like memecoins. Why didn’t this stock go up 100% in one year? Yet, it’s best to remember that the cost of money (i.e., interest rates) serves as a solid benchmark for what a stock should outperform over a given year. Anything better than 5% is ideal.

Okay, enough philosophy for this morning. Why isn’t COIN climbing higher, even after smashing revenue expectations by nearly $500 million? Well, maybe it was all priced in.

Positive crypto headlines have ceaselessly pounded our eyeballs since Trump won. If you recall, Bitcoin made most of its moves in September and October, after it became clearer who was going to pull off the 2025 election. It’s likely a lot of the ‘bull’ has already been priced in.

Let’s finish with one final thought: Bitcoin dominance isn’t budging. A metric that shows Bitcoin’s market cap relative to all other cryptocurrencies, Bitcoin dominance has remained above 60% since the start of this month. It hasn’t dropped below 50% since August 2023!

We can take this as a sign of the times. Investors care about the king, not the knockoffs. And maybe assets will get a little more traditional around here.

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Abu Dhabi reveals $437 million in BlackRock’s IBIT

The Middle Eastern country purchased Bitcoin through one of its sovereign wealth funds, Mubadala Investments - link 

$450 million in outflows last week: Coinshares

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Jane Street buys 6% stake in IREN

Market maker Jane Street acquired a 6% stake in IREN, formerly Iris Energy. It’s unclear whether the purchase is a long-term position - link

Milei denounces ‘LIBRA’ token after initial embrace

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Announcing the Blockspace Store

Help decentralize Bitcoin! Use coupon code ‘BLOCKSPACE’ for 5% off a Bitcoin today - store