About a month ago, Patent Forecast® reported on Coinbase going public via direct public offering. At the time, market watchers predicted a valuation of over $50B. On its opening day of April 14, 2021, stock debuted at $381 per share and at one point reached a peak of nearly $430 per share. The closing price of $328.28 gave the company an $85B value.
Coinbase has a larger patent portfolio than most other online exchange platforms, with over 40 published patent assets. The company's IP puts it in a competitive position with traditional financial institutions such as Visa and is also notable given the open-source strategies of some smaller cryptocurrency and blockchain startups. Currently, most of Coinbase's revenue is drawn from crypto transactions on its platform, which is highly dependent on a volatile market. The direct public offering has also created a positive feedback loop, with Bitcoin and other coin prices surging to record highs. Yet Coinbase itself recognizes that its institutional revenue is "inherently unpredictable." A more stable asset? Patents. The company increased its filing in the past two years after the "crypto winter" of 2018, when coin prices plummeted. These investments in licensable technology will pay off in the future regardless of the fluctuations of the market. You can follow Coinbase and other companies as the cryptocurrency industry continues to grow with the Patent Forecast®.
