For a while, I’ve owned crypto beta in the form of Bitcoin, Ethereum, and more recently, Coinbase stock. Coinbase reported earnings this week for the second time since going public. Once again, it blew away expectations. After a modest move higher on the news, the stock trades around $280, representing a market cap of approximately $58 billion. In the last two quarters, the company generated about $2 billion of earnings, effectively the same amount of free cash flow. Coinbase exited the quarter with around $5 billion in cash and crypto assets on its balance sheet. My back of the envelope math yields a current run rate of $4 billion of annual cash earnings on a net market cap of $53B, putting the stock at a 13x multiple.