Coinbase Beats Strategy Despite Revenue Gap

Coinbase and Strategy are two companies that allow investors to own crypto without actually owning it.

While Strategy's market value is roughly $66 billion, Coinbase's is around $52 billion, despite generating more revenue at $6.0 billion over the past year compared to Strategy's $500 million.

The reason for this disparity lies in how each company is valued: Strategy's worth is based on its claim to a large pile of Bitcoin, while Coinbase's value comes from its fee stream as an exchange.

Coinbase has been generating operating profit from its fee business, but has also reported a net loss over the past year due to marking down the company's held crypto to market value. Strategy, on the other hand, lost more than $31 billion over the same period due to the decline in Bitcoin's value.