4 ms·

Coinbase ended March with $6.3 billion in cash. The companies burn rate is $1.5b PER QUARTER. Do your internship and get the "dream company" thing out of your

by mike_d 4y ago

Coinbase ended March with $6.3 billion in cash. The companies burn rate is $1.5b PER QUARTER. Do your internship and get the "dream company" thing out of your system. Try to get offers from other companies. Re-evaluate when your internship is up. If they have gotten burn under control, consider accepting an offer.

danielmarkbruce 4y ago
That's not right. The burn is much lower than that, and they have been cashflow positive for a couple years before this last qtr. Look at the cashflow statement to understand it.
- mike_d 4y ago
  If that number is wrong they will need to restate financials, which is even worse. It comes directly from their Q1 2022 shareholder letter.
  - danielmarkbruce 4y ago
    The cashflow statement - read it, understand it. It's basic accounting. Nothing needs to be restated.
    - mike_d 4y ago
      Here is a Forbes article that states the same, you should let them know as well: https://www.forbes.com/sites/petercohan/2022/05/11/84-below-peak-coinbase-stock-to-fall-as-stablecoin-breaks-the-buck/ https://www.forbes.com/sites/petercohan/2022/05/11/84-below-...
      - danielmarkbruce 4y ago
        Here is the SEC filing: https://www.sec.gov/ix?doc=/Archives/edgar/data/1679788/000167978822000048/coin-20220331.htm#i6ff81ac294904d009a3ab35125a1d5f6_28 https://www.sec.gov/ix?doc=/Archives/edgar/data/1679788/0001... It's always worth going to the source. Look at the line cash from operating activities. This was the first qtr for a couple years they've run negative. It was 800 odd mill, which includes custodial funds of 700 something mill. Also, it's worth understanding the difference between a forbes "contributor" and an actual forbes article. It's pretty different. The contributor articles are basically blog posts by randoms.
        mike_d 4y ago
        Here is the "random" that wrote the article: https://en.wikipedia.org/wiki/Peter_Cohan https://en.wikipedia.org/wiki/Peter_Cohan
        danielmarkbruce 4y ago
        You can trust this random, or just read the filings for yourself. The nice thing about public companies is you can stop listening to pundits and just get the info yourself.
        mike_d 4y ago
        But by your logic can we really trust the SEC? That is just a bunch of randoms that work for the government, man. Why not go directly to the document published directly on Coinbase's investor website that I mentioned in my first comment? https://s27.q4cdn.com/397450999/files/doc_financials/2022/q1/Coinbase-Q122-Shareholder-Letter.pdf https://s27.q4cdn.com/397450999/files/doc_financials/2022/q1... (Hint: page 11, "Total expenses" has been north of $1.5b for the last two quarters)
        danielmarkbruce 4y ago
        The SEC don't make the filings. The company sends them to the SEC, who just hosts them... Ok, in your link..."expenses" on page 11 doesn't include revenue.... so no, that's not burn. You want to add the money coming in to the money going out to calculate burn. Look at pages 20 onwards. Same data they send the SEC. You have revenue and expenses in an income statement. But, many of the expenses are non-cash. And many balance sheet changes (like receivables, inventory etc) affect cash but not the income statement. So, if you want to understand the burn rate the easiest place to go is the cashflow statement. That's page 22. Look about 2/3 way down and you'll see "net cash (used in) provided by operating activities". It's worth investing a few hours to understand basic accounting if you want to understand the basics of companies. Lots of info at your fingertips if you can be bothered. You'll even be able to see where random forbes contributors go wrong.

by mike_d 4y ago

danielmarkbruce 4y ago

That's not right. The burn is much lower than that, and they have been cashflow positive for a couple years before this last qtr. Look at the cashflow statement to understand it.

mike_d 4y ago
If that number is wrong they will need to restate financials, which is even worse. It comes directly from their Q1 2022 shareholder letter.
- danielmarkbruce 4y ago
  The cashflow statement - read it, understand it. It's basic accounting. Nothing needs to be restated.
  - mike_d 4y ago
    Here is a Forbes article that states the same, you should let them know as well: https://www.forbes.com/sites/petercohan/2022/05/11/84-below-peak-coinbase-stock-to-fall-as-stablecoin-breaks-the-buck/ https://www.forbes.com/sites/petercohan/2022/05/11/84-below-...
    - danielmarkbruce 4y ago
      Here is the SEC filing: https://www.sec.gov/ix?doc=/Archives/edgar/data/1679788/000167978822000048/coin-20220331.htm#i6ff81ac294904d009a3ab35125a1d5f6_28 https://www.sec.gov/ix?doc=/Archives/edgar/data/1679788/0001... It's always worth going to the source. Look at the line cash from operating activities. This was the first qtr for a couple years they've run negative. It was 800 odd mill, which includes custodial funds of 700 something mill. Also, it's worth understanding the difference between a forbes "contributor" and an actual forbes article. It's pretty different. The contributor articles are basically blog posts by randoms.
      - mike_d 4y ago
        Here is the "random" that wrote the article: https://en.wikipedia.org/wiki/Peter_Cohan https://en.wikipedia.org/wiki/Peter_Cohan
        danielmarkbruce 4y ago
        You can trust this random, or just read the filings for yourself. The nice thing about public companies is you can stop listening to pundits and just get the info yourself.
        mike_d 4y ago
        But by your logic can we really trust the SEC? That is just a bunch of randoms that work for the government, man. Why not go directly to the document published directly on Coinbase's investor website that I mentioned in my first comment? https://s27.q4cdn.com/397450999/files/doc_financials/2022/q1/Coinbase-Q122-Shareholder-Letter.pdf https://s27.q4cdn.com/397450999/files/doc_financials/2022/q1... (Hint: page 11, "Total expenses" has been north of $1.5b for the last two quarters)
        danielmarkbruce 4y ago
        The SEC don't make the filings. The company sends them to the SEC, who just hosts them... Ok, in your link..."expenses" on page 11 doesn't include revenue.... so no, that's not burn. You want to add the money coming in to the money going out to calculate burn. Look at pages 20 onwards. Same data they send the SEC. You have revenue and expenses in an income statement. But, many of the expenses are non-cash. And many balance sheet changes (like receivables, inventory etc) affect cash but not the income statement. So, if you want to understand the burn rate the easiest place to go is the cashflow statement. That's page 22. Look about 2/3 way down and you'll see "net cash (used in) provided by operating activities". It's worth investing a few hours to understand basic accounting if you want to understand the basics of companies. Lots of info at your fingertips if you can be bothered. You'll even be able to see where random forbes contributors go wrong.