From the perspective of industry development, in recent years, the state has successively introduced blockchain support policies, and the epidemic has also promoted R&D investment in blockchain from all walks of life; The cryptocurrency market has developed rapidly, which is reflected in the market value growth of 293. 1% in the last year. The market value of Bitcoin alone has surpassed well-known companies such as Tesla, Tencent, Alibaba and Facebook. Institutions rushed to increase their holdings of cryptocurrency, which promoted the bull market of cryptocurrency market.
From the perspective of the company's operation, the business scope of Bitcoin base is diversified, mainly providing online trading platforms and providing services such as subscription items and services, which effectively reduces the volatility of income. Bitcoin base made its first profit in 2020, with a net profit of $320 million. In terms of profit indicators, the return on equity and return on equity of Bitcoin base both exceed those of major traditional exchanges. According to DuPont's analysis, the asset turnover rate is the main contribution to ROE growth, the equity multiplier is at the bottom of the industry, and other indicators are basically the same as those of the traditional three major exchanges. From the perspective of capital structure and solvency, the Bitcoin base has strong growth ability, and the net profit returned to the mother at the end of 2020 increased by1247.35% year-on-year; The asset-liability ratio is rising year by year, which shows that you have confidence in the operation of the enterprise and have the ability to bear the interest and risk of borrowing.
From the perspective of future development, Bitcoin base is bound by more and more strict laws and regulations on a global scale. To this end, bitcoin bases must increase their investment in compliance to meet legal and regulatory requirements. On the other hand, with the rapid development of encryption economy, Bitcoin base has great opportunities to further expand its business map and operating income, and continue to maintain its leading position in the encryption industry.
catalogue
1. The victory is in hand, and the scenery is boundless: digital currency's first share landed on Nasdaq?
2. Dapeng rises one day, soaring to the sky nine Wan Li: Bitcoin base is listed at this time.
2. 1 The state has successively issued blockchain support policies, and the epidemic has promoted blockchain R&D investment.
2.2 The global cryptocurrency market is developing rapidly and the situation is still strong.
2.2. 1 Bitcoin has a market value of over one trillion yuan, and it is safe to sit on Diaoyutai.
2.2.2 The COVID-19 epidemic is the burning point, and institutions are scrambling to add fuel to the flames.
3. See how Zhongnanshan soars above the white clouds: an analysis of the competitiveness of Bitcoin base.
3. 1 Diversified business scope, effectively reducing the volatility of income.
3.2 "* * *" or "honey", the Bitcoin base took advantage of this situation.
3.3 Bitcoin base performed well in key business indicators.
Born of worry, breaking a cocoon into a butterfly: risks and opportunities of cryptocurrency exchange
4. 1 From nationwide to business, the exchange faces complex risks.
4.2 With abundant cash flow and innovative products, the exchange has a bright future.
1. digital currency Stock Exchange Listed Stock Exchange: The Beginning or the End of Encryption Industry?
On February 25th, 2020, Bitcoin Base formally submitted a listing application to the SEC, and planned to directly list its Class A common stock on the Nasdaq Global Select Market (stock code "COIN"). Bitcoin base is a cryptocurrency exchange headquartered in the United States, with users in more than 100 countries, about 43 million certified users, 7,000 institutions and165438+5,000 ecosystem partners. Its business scope covers investment, consumption, saving, earning and using cryptocurrency. If the Bitcoin base is successfully listed, it will become a milestone in the encryption industry.
During the period from 20 12 to 2020, the overall market value of encrypted assets will increase from less than 500 million US dollars to 782 billion US dollars, with the compound annual growth rate (CAGR) exceeding 150%. In the same period, the retail users of Bitcoin base increased from about 1.3 million to 43 million, and the number of institutions increased from more than 1.000 in 20 17 to 7,000 in 2020. By the end of February, 65438+2020, the total transaction volume of customers on the Bitcoin base platform exceeded 456 billion US dollars, and assets worth more than 90 billion US dollars were stored on the company platform. At present, the Bitcoin base has developed into a leading supplier of financial infrastructure and technology in the field of cryptographic economy.
2. Bitcoin base standing in the air: Blockchain industry and digital currency market are developing rapidly.
2. 1 The state has successively issued blockchain support policies, and the epidemic has promoted blockchain R&D investment.
In 2020, the global uncertainty and distrust brought by the COVID-19 epidemic promoted the investment in research and development of blockchain technology. Patent protection association of china's "Report on Global Licensed Patents in the Blockchain Field in 2020" shows that as of May 2020, there were 3,924 patents granted in the global blockchain field, regardless of the caliber of virtual currency, public chain and alliance chain. Among them, the United States accounts for 39%, South Korea accounts for 2 1%, and China accounts for 19%.
At present, the development of blockchain technology has also attracted great attention from governments all over the world. Governments have issued many documents and policies to promote the development of blockchain technology and strengthen the governance of blockchain technology. With the application of blockchain technology, it will bring subversive changes to the traditional social production relations and promote the development of global politics, economy and society. According to the survey data of China ICT Institute, from 20 19 to 2020, 24 countries in the world have issued special policies or laws and regulations specifically for the development and supervision of blockchain industry. The European Union, China, Australia, India, Mexico and other countries are actively developing blockchain industry and have formulated overall industrial development strategies. For example, from 2065438 to September 2009, Germany released its National Blockchain Development Strategy; 20 19, 1 1, the European commission announced a new European investment plan for artificial intelligence and start-ups focusing on blockchain; In February 2020, Australia released the "National Blockchain Development Roadmap"; In March 2020, Korea Science and ICT announced the launch of the blockchain technology verification support plan 2020.
2.2 The global cryptocurrency market is developing rapidly and the situation is still strong.
Cryptocurrency is a trading medium that uses cryptography to ensure the security of transactions and control the creation of marketing unit. It undertakes many functions such as exchanging media, storing value, providing energy for applications, etc. It is the most active part in the global encryption market. Nowadays, the public has widely recognized that blockchain technology is the three major ways to change the future. In this era background, cryptocurrency relying on blockchain technology is undoubtedly the eye of the storm.
The global encrypted digital currency market scale has increased from13 to $764.7 billion in 2020, with a compound annual growth rate of over 3.2%. In 2020 alone, the market value will increase by nearly $570 billion, with a growth rate of 293. 1%. And the encryption market 202 1 remains high.
2.2. 1 Bitcoin has a market value of over one trillion yuan, and it is safe to sit on Diaoyutai.
In the global encryption market, Bitcoin (BTC), as the creator, is undoubtedly the first. Since Satoshi Nakamoto created Bitcoin, its market share has remained high. Since 202 1, the market share of Bitcoin has basically remained above 60%, and the lowest market share in history is 33%, followed by ETH, but the market share of ETH is only around 10%, and it is far from being able to compete with Bitcoin, especially other counterfeit money, for the remaining share of Bitcoin.
At the same time, in the recent overall downturn of the market economy, Bitcoin has sprung up everywhere. The market value rose rapidly in a short time, even breaking through the trillion-dollar mark on February19,20265438.
Judging from the current market value of global listed companies, only four high-tech companies, Apple, Microsoft, Amazon and Google, have exceeded the trillion-dollar mark, among which Apple has the highest market value, reaching two trillion dollars. If bitcoin is added, its market value has surpassed Tencent, Tesla, Ali, Facebook and other well-known companies. What is even more shocking is the speed at which Bitcoin has become a "trillion-dollar club member": it took Apple 42 years, Amazon 24 years, Google 2 1 year, and Bitcoin only took 12 years.
Bitcoin is far ahead in the return on major assets in the world, reaching 30 1.46% in 2020. In terms of market returns, the S&P 500 index yielded 16.26% in the past year, and the gold sought after by the market was only 25%. It can be said that the performance of Bitcoin in 2020 has far surpassed all other major assets.
2.2.2 The COVID-19 epidemic is the burning point, and institutions are scrambling to add fuel to the flames.
In 2020, the world experienced the once-in-a-century "epidemic" and "negative oil price" and other black swan events. In order to cope with the economic recession caused by the epidemic, countries have adopted a quarterly loose monetary policy. In the economic environment of high inflation and low growth, in order to avoid the loss of nominal principal and pursue higher returns, the demand for investors to hoard cash naturally evolved into the demand for cryptocurrencies such as gold and bitcoin, which led to a bull market in the crypto market with Bitcoin as the head cow.
According to the data of bitcoin treasury bills, by the end of 2020, 65,438+05 listed companies around the world had purchased and held more than 65,438+million bitcoins, of which 65,438+02 were located in the United States or Canada. In February, 20021,elon musk, the father of Tesla, the world's richest man, bet $65,438.05 billion on the bitcoin market. WedBush, an American broker, predicts that in the next 12- 18 months, nearly 5% of listed companies will follow Tesla's investment diversification strategy and join the bitcoin investment wave.
3. Alternative financial market exchanges: How strong is the Bitcoin base?
3. 1 Diversified business scope, effectively reducing the volatility of income.
As we all know, there are two ways to obtain bitcoin. The first way is to use a complex and powerful computer to mine bitcoin by solving complex mathematical problems, or to buy bitcoin on an exchange. The former is ridiculously expensive and requires a lot of technical knowledge, while the latter only needs to open an account in the above-mentioned exchanges, of which Bitcoin base is the best.
The main business of Bitcoin base is to provide an online trading platform, which allows buyers and sellers to meet and invest, consume, send and receive, store, preserve, mortgage, lend, distribute, construct, pay and use encrypted assets more widely, and access and trade at appropriate prices. Its income composition includes the following parts: transaction income, subscription and service income, and other business income.
Transaction income includes net transaction fee income generated by the platform. The company charges about 0.50% for buying and selling cryptocurrencies, but this rate will change according to market conditions. From the middle of 20 19 to the end of 2020, the transaction service income increased from $235.35 million to $1096170,000, an increase of 366%. Trading service income is the most important part of operating income, accounting for about 86%.
Revenue from subscription projects and services includes storage, shareholding, distribution and construction. These benefits are calculated by the interest method, and the interest benefits depend on the legal fund balance of custody and the current interest rate environment. Subscription and service revenue accounts for about 4% of total operating income. From 20 19 to 2020, the income will increase by about 355%.
Other business income includes income from the sale of encrypted assets. Companies often use their own encrypted assets to complete customer transactions. Before some small orders are sold to customers, the company keeps and controls the encrypted assets in these orders, and records the income during the sales process. The company records the total sales value as income and the cost of encrypted assets as other operating expenses. Other income also includes interest income earned entirely through cash and cash equivalents. This kind of income accounts for about 1 1% of the total income, which increased by 329% in the past year.
In terms of user groups, the target revenue groups of Bitcoin base are about 43 million retail users, 7,000 institutional users and115,000 ecosystem partners. These customers are located in all continents 100 countries. Among them, the company's retail users are all over various regions and age groups, which shows that Bitcoin base has been widely accepted as a provider of encryption economy. By the end of 2020, there were more than 43 million retail users and 2.8 million monthly trading users in Bitcoin base, an increase of about 180% compared with the end of 20 19.
In addition, institutional customers of Bitcoin base include hedge funds, major trading companies, small and large financial institutions, family businesses and companies that have recently sought to allocate some of their portfolios to encrypted assets. By June 65438+February 3, 20201,there were 7,000 corporate platform clients. For example, One River Asset Management, an innovative investment management company.
In terms of eco-partners, the Bitcoin base is looking for companies that can build their own products and services or distribute them through the Bitcoin base platform. For example: developers who build new blockchain protocols and applications using blockchain protocols; Creators of new tokens on these protocols; When they accept these tokens as a new payment method for their business, they see commercial value; Organizations and financial institutions that use bitcoin base analysis technology to monitor various use cases (such as compliance) of blockchain transactions. In addition, the company's partners in the DeFi agreement include Compound.
3.2 "* * *" or "honey", the Bitcoin base took advantage of this situation.
Since the outbreak of the new crown pneumonia epidemic, the global economic situation has become increasingly depressed, and people have turned their attention to the cryptocurrency industry, and cryptocurrencies have flocked to the market, which has promoted the business development of the virtual asset trading platform. The operating income of Bitcoin base soared from 65.438+82 billion yuan in the second half of 2065.438+09 to 5.666 billion yuan in the second half of 2020, with a compound annual growth rate of 76.44%. At present, the operating income scale of Bitcoin base cannot be compared with that of traditional exchange giants, but the gap is rapidly narrowing. In the second half of 2020, the difference between the Bitcoin base and the Hong Kong Stock Exchange was only 265,438+68 million yuan. At the same time, COINBASE has great growth potential: in 2020, the revenue level of other stock exchanges (Hong Kong Stock Exchange, London Stock Exchange, Intercontinental Exchange, etc.) declined one after another, but the revenue of Bitcoin base rose to 2. 12 times that of the beginning of the year.
In terms of net profit, with the development of crypto-digital currency, the trading volume of major crypto-markets has increased rapidly. The Bitcoin base made its first profit in 2020, growing rapidly from 45 million yuan in the first half of the year to 654.38 million yuan+65 million yuan at the end of the year, an increase of 262.48%. In the first half of 2020, HKEx and Intercontinental Exchange only increased by 2.57% and -35.86%.
In terms of return on equity (ROE) and return on total assets (ROA), in the second half of 2020, Bitcoin base exchanges surpassed all traditional exchanges, and ROA was even 2.50 times and 3.5 1 times that of HKEx and Intercontinental Exchange respectively, which was mainly due to the epidemic in 2020 and the occurrence of "black swan", and the major traditional exchanges suffered heavy losses and encryption.
According to DuPont's analysis, except for asset turnover rate and equity multiplier, other indicators are basically the same as those of the traditional three major exchanges. Asset turnover rate is the main contribution factor to the growth of return on net assets. The 20-year asset turnover rate of Bitcoin base is 0.3 1, while that of HKEx and Intercontinental Exchange is only 0.06 and 0.05, and that of London Stock Exchange is even 0. As a virtual digital currency trading platform, compared with the other three traditional exchanges, the unique technical characteristics and application scenarios of the virtual market make the trading procedures of Bitcoin base simpler, the production and operation faster, and more profits can be obtained with less resources.
The equity multiplier of Bitcoin base is at the bottom of the industry, only 3. 19, and the intercontinental exchange with the lowest equity multiplier among the three traditional exchanges is 6, which is 1.88 times that of Bitcoin base. The capital invested by the shareholders of Bitcoin base accounts for a relatively large proportion of assets, indicating that the borrowed capital is very small and the financial risk is very small, which may be related to the fact that Bitcoin base has just entered the market.
From the perspective of capital structure and solvency, the asset-liability ratio of the three traditional exchanges is above 80%, and the asset-liability ratio of the London Stock Exchange has even reached more than 99% in recent years. According to the disclosure in the annual report and prospectus of Bitcoin base, although the asset-liability ratio of Bitcoin base is also increasing year by year, from 55.6 1% at the end of 20 19 to 73.94% at the end of 2020, there is still a big gap with the three traditional exchanges. However, the current development trend of Bitcoin base is relatively healthy. The rising asset-liability ratio shows that Bitcoin base is full of confidence in business operation and has the ability to bear the interest costs and risks of borrowing from banks.
In addition, the Bitcoin base has strong growth capacity and great development potential. In the first half of 2020 and the end of 2020, the net profit returned to the mother increased by 765,438+00.87% and 65,438+0247.35% respectively. The other three traditional exchanges are relatively mature and have little room for growth. The net profit of the Old London Stock Exchange even increased by-13. 13% and -8. 13% year-on-year.
3.3 Bitcoin base performed well in key business indicators.
In addition to financial performance, the company also uses business indicators such as Certified Users, Monthly Transaction Users (MTU), assets on the platform, transaction volume and non-GAAP financial indicators to evaluate business, measure performance, determine trends that affect the company's business and make strategic decisions. Verify that users represent users who show interest in the platform. In all quarters ending February 3 18, 20 1, 20 19 and 2020, 12 and 3 1, the number of verified users increased compared with the previous quarter. Among them, the retail e-wallet application started in the middle of 20 18, and by 2020, it has grown to more than 2 million users,12,31.
MTU represents the company's active and passive retail user transaction basis and reflects the revenue opportunities on the platform. MTU promotes the growth of retail transaction volume, including transaction-based products that retail users interact with, such as investment, expenditure, receiving and dispatching, investment and distribution. MTU has historically been related to the price of Bitcoin and the volatility of encrypted assets.
The assets on the platform are a measure of the total value scale held by the platform, which reflects the credibility and profit opportunities of the platform. This indicator is influenced by market factors. For example, the price of encrypted assets (mainly Bitcoin and Ethereum) dropped from the high level in 20 17, so the platform assets declined in 20 18. During the period of 20 17, 12, 3 1 to 20 18, 12, 3 1, the prices of Bitcoin and Ethereum decreased by about 74% and 82% respectively, and the total market value of encrypted assets decreased by 80%. During the same period, the assets on the platform decreased by 73%. Despite short-term fluctuations, due to the increase in the price, quantity and types of cryptocurrencies, the assets on the platform increased from $7 billion to $654.38+0, 2065.438+09 and 2020, respectively.
The transaction volume represents the product of the transaction quantity and the transaction price of the asset when the transaction is executed. Since trading activities directly affect trading income, the measurement standard reflects the liquidity in the company's order book, the trading status and the potential growth of cryptocurrency economy. Compared with institutional transactions, retail transactions are more affected by the fluctuation of bitcoin prices and encrypted assets, and institutional transactions fluctuate less for a period of time. With the increase of institutional transactions, the number and types of encrypted assets supported by the platform are expanding, and the utility of encrypted assets is also expanding. It is expected that the correlation between bitcoin price, volatility of encrypted assets and transaction volume will decrease.
Non-GAAP financial indicators refer to the adjusted EBITDA, that is, the adjusted EBITDA is defined as net income (loss), adjusted to exclude interest expenses, income tax (income) reserves, depreciation and amortization, stock-based compensation expenses, goodwill impairment, acquired intangible assets and encrypted assets, restructuring expenses, deduction of compensation expenses related to re-acquisition, unrealized foreign exchange gains and losses, fair value adjustment of derivatives and non-recurring statutory reserves and related. After the annual adjustment of 5438+February 3 1 as of June 2020, EBITDA increased compared with the years of 5438+February 3 1 and 20 19 as of June 2020, mainly due to the increase in transaction income.
At present, Bitcoin base has obvious advantages in brand influence, user trust, compliance and product experience. The company has established a powerful back-end technology platform to support the real-time uninterrupted demand of the global encrypted asset market. By working with global regulators to formulate policies, the company has invested heavily in compliance and created industry-leading security practices to protect encrypted assets. The company attracts retail users, institutions and ecosystem partners to the platform, creating a powerful flywheel: retail users and institutions store assets and improve liquidity, enabling the company to expand, provide and launch new and innovative encrypted assets, thus attracting more new customers to join. The scale and leading position of the company have attracted ecosystem partners to connect with millions of customers around the world, thus further enhancing the value of the platform.
Born of worry, breaking a cocoon into a butterfly: risks and opportunities of cryptocurrency exchange
4. 1 From nationwide to business, the exchange faces complex risks.
Due to its global business, Bitcoin base is regulated by various laws and regulations formulated by federal, state, local and foreign governments and regulatory agencies in the United States. On a global scale, Bitcoin bases are bound by increasingly strict laws and regulations, involving the investigation and prevention of combating terrorist financing, anti-money laundering, fraud and other illegal activities, competition laws and regulations, economic and trade sanctions, privacy, network security, information security and data protection. These laws, regulations and rules (and their interpretations) are constantly changing and increasing in number.
Money laundering and terrorist financing are the crises faced by all cryptocurrency transactions. Bitcoin base is subject to various anti-money laundering and anti-terrorist financing laws, including the bank secrecy law of the United States and similar laws and regulations abroad. Bitcoin Base has implemented a compliance plan to prevent the platform from being used for money laundering, terrorism financing and other illegal activities in China or with individuals or entities (including designated lists issued by OFAC and equivalent foreign authorities). The compliance plan includes policies, procedures, reporting protocols and internal controls, which are designed to meet the requirements of laws and regulations and help manage risks related to money laundering and terrorist financing. Anti-money laundering laws and regulations are constantly developing and vary from jurisdiction to jurisdiction. The company will continuously monitor the compliance with anti-money laundering and anti-terrorist financing laws and industry standards, and implement policies, procedures and control measures according to the latest legal requirements.
4.2 With abundant cash flow and innovative products, the exchange has a bright future.
Bitcoin base operates a market with the deepest liquidity pool and network effect, and has a lot of liquidity to exchange a wide range of encrypted assets. The good combination of retail and institutional activities provides the company with deep liquidity, highlighting the synergy and network effect between customers on the platform. Liquidity brings liquidity, and this advantage will deepen as we continue to expand the range of encrypted assets we support and attract new customers to the company platform.
Bitcoin base develops with the development of encryption economy. The powerful driving force promotes the online communication in almost all aspects of economic activities. More importantly, the Bitcoin base has great opportunities to increase the number of customers, including increasing users' adoption and participation in products, expanding and accelerating the coverage of retail users, expanding institutional coverage and support, developing good ecosystem relations, and increasing payment methods and international expansion. Increase the depth and breadth of platform encrypted assets: including expanding support for digital currency and encrypted assets, supporting the blockchain protocol function of the exchange, and marking new assets; And launch new innovative products to actively promote business development, that is, build any existing and more financial and non-financial products to create an encrypted economy.
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