Are Investors Missing a Core Component of Coinbase's Business?

It is not uncommon for large companies to create an investment arm in an effort to gain exposure to adjacent technologies and services in the start-up ecosystem. Salesforce.com has invested in several high-profile companies such as Zoom and, in the case of MuleSoft, has even acquired some of its portfolio companies after reaching scale. Similar to other facets of the technology industry, the crypto sector is home to a number of corporate venture funds as well.

According to data from Crunchbase, crypto-trading platform Coinbase (NASDAQ: COIN) has made over 200 investments across the crypto landscape since its founding in 2018. Let's dig into why this portfolio could contain some overlooked upside for Coinbase stock.

Coinbase Ventures represents an in-house venture capital firm underneath the broader Coinbase umbrella. The company uses its profits to make equity investments in smaller crypto players. One reason Coinbase does this is that these investments allow for quick exposure across different areas of the crypto spectrum without the need to spend years researching new markets or technologies and spending excess capital on those endeavors.

Source Fool.com