Coinbase Global Inc (NASDAQ:COIN) stock sold off this week after the company announced it received a “Wells Notice” from the U.S. Securities and Exchange Commission in regard to its Lend program.
Requisite Capital Management’s Bryn Talkington took advantage of the pullback and added to her position in Coinbase, she said Thursday on CNBC’s “Fast Money Halftime Report.”
The stock traded down from $280 last week to $257 on the SEC news, she said.
Talkington told CNBC that she is a big fan of Coinbase CEO Brian Armstrong and a big believer in the technology around cryptocurrency.
Coinbase reported revenue of $2 billion and net income of $1.6 billion last quarter, she said, adding that the company also has $4.4 billion in cash.
Coinbase has the potential to reach net income of about $8 billion next year, Talkington said.
“If you look at their runway, this company is growing so fast.”
Coinbase also just got approved to offer its platform in Japan and Germany, which are really large crypto markets, she noted.
The company is going to benefit in the same way that PayPal Holdings Inc (NASDAQ:PYPL) and Square Inc (NYSE:SQ) benefitted when they announced cryptocurrency offerings, Talkington said. “It was very accretive for their bottom line. I think it’s early days for Coinbase.”
COIN Price Action: Coinbase has traded as high as $429.54 and as low as $208 since its direct listing on April 14.
The stock was down 0.69% at $256.42 at time of publication at market close Thursday.
Photo: Courtesy of Coinbase