Coinbase: Be Convinced But Be Patient

SummaryOver the past eight quarters, total quarterly trading volume has grown from $28 billion, to the current "depressed" level of $217 billion.Adjusted Q2 EBITDA of negative $151 million provides a better picture of business health than the headline net loss figure which includes $377 million in non-cash crypto impairments.Coinbase has a net cash position near $2.5 billion, over $6 billion in near money assets and no debt principial due until 2026.Though no single altcoin represents more than 10% of volume or transaction revenues, combined these assets accounted for 47% of revenues in Q2.There is no real indication of a policy pivot by the Fed. Outside of modest reversal in energy prices, last week's September CPI showed entrenched price growth worsening.Among broader market participants, sentiment surrounding the crypto space is near a two-year low. Bitcoin (BTC-USD) is down 70% in U.S. dollar terms from its highs a year ago and currently sits just 10% above its 52-week low of $17,700. Coinbase (NASDAQ:COIN), the leading U.S. digital asset marketplace, has suffered with this year's correction and is also down substantially, off near 80% from its 2021 IPO. In June CEO Brian Armstrong announced an 18% reduction in team members and the company's all-important retail trading revenues likely hit a fresh 18-month low in the recent third quarter. So... is the time to build a contrarian position in Coinbase approaching? Bitcoin and...