Coinbase: the valuation gap widened and the earnings gap did not

The discount runs through the cost of equity rather than through earnings. Governance and disclosure quality enter the denominator, which is why the gap can widen while fundamentals converge. The peer comparison is the evidence. On the same forward earnings basis the discount to comparable franchises widened by several turns while relative earnings growth was unchanged. The position: long on Coinbase, entry locked at publication and the exit dated rather than open-ended. The target is stated in the call block above and the horizon with it. Sized to the catalyst rather than to conviction, with the invalidation written into the kill-switch card instead of left implicit. Regulatory change is the risk that is not hedged. A revised capital requirement would trap the distribution this position depends on.