Coinbase Global, Inc. (COIN) Earnings Call Transcript & Summary

Hello. Welcome to Citi Fintech 11. This session, we're really pleased to be hosting and featuring Alesia Haas, CFO of Coinbase. And before we get started, I'd like to remind you that during today's chat, Alesia may make forward-looking statements. Actual results may vary materially from today's statements. Information concerning risks, uncertainties and other factors that could cause results to differ from these forward-looking statements is included in Coinbase's SEC filings and shareholder letter, where both are available on the Coinbase Investor Relations website. Our discussion today will include references to non-GAAP financial measures. A reconciliation of these non-GAAP financial measures is included in the company's most recent shareholder letter. And now with that out of the way, Alesia, thank you so much. Great to have you here at Citi Fintech.

Thank you so much for having me, Pete. I'm really looking forward to this conversation.

Fantastic. Why don't we start off here, I'd love to understand a little bit more about your pedigree. You've had a number of roles across the financial services industry. Maybe you could take us back to 2018, what was appealing to you about joining Coinbase? And perhaps over the last 2, 3 years, how has your perspective evolved on cryptos and Coinbase more specifically over that period?

Absolutely. So I'll start with the sort of a funny story. So I rarely take calls from unknown numbers. And fortunately, it took one in early 2018 from a recruiter for the Coinbase role. And when I first heard the name Coinbase that mental image that popped into my mind was those grocery store change machines where you drop in your change, the money you had.

Coinstar.

Coinstar. Exactly. Needless to say, I came to Coinbase not as an early crypto adopter, but a total novice. And so it's really through that interview process and speaking with Brian, understanding his vision and engaging with our incredible Board that I really drink the crypto Kool-Aid and I've only grown more and more convinced as time has passed the future of our entire financial system, but even broader than that will be built on blockchain technologies. I think that speaks to kind of what has evolved now over the past 3.5 years since I joined in early 2018, which is that every passing quarter, we see the role of crypto expand. We're seeing new use cases with the rise of NFTs, with DeFi, the rise of play-to-earn crypto video games. We're seeing new capital enter the space. We're seeing new talent enter the space. So what we see is institutional capital from all corners. We saw retail users that are measured by the World Bank in Crypto.com. Now it's estimated that we have over 200 million global users in crypto, and that rate of growth is accelerating. We're also seeing most fintech companies launch a product. We like to say it was kind of lonely in 2018. It was just Coinbase out there saying crypto was coming, crypto was coming. And I no longer have to rationalize my career move with my friends. While in 2018, I definitely had some raised eyebrows about what I was doing moving into crypto. So when we started, we thought that crypto would reduce friction in financial world. And now our view, in my view, specifically is just much wider for the power of blockchain solutions. So we think about cryptos infrastructure layer to Web 3.0, and where social and mobile companies for the building blocks of Web 2.0, crypto and blockchain will drive Web 3, which improves upon the past models to combine content payment identity in 1 platform. And we think this is going to be a paradigm shift of how we all interact with the Internet and will unleash just unprecedented innovation and economic freedom. And so our product suite is really being designed to fuel this shift. And the last thing I'll say here is despite all this growth in crypto over the past few years, a negligible portion of the world's financial transactions run on crypto today. And just a sliver of the mobile phone users can access crypto on crypto apps. And so we are in the early days, and we are just getting started. So if you are a novice like me, this is not too late to join this industry.

That's a great point. And I can certainly empathize I needed to go down that rabbit hole as well and let a lot of this sink in. And it takes time. It's certainly a process, but you certainly come out of the other end of that hole with a completely different perspective on the opportunities here, which are very, very large. One of the things I wanted to discuss with you is how do you plan for the business, which is I'd imagine, is fairly -- one of the more unique CFO roles that's out there today. Typically, CFOs have fairly stable parameters to work with when it comes to developing strategic operating plans, M&A, budgeting activity and so on and so forth. And I'd imagine the inherent volatility of the crypto markets presents a number of challenges to that whole planning process. So maybe it would be helpful if you could just broadly discuss your operating framework as a CFO, as you plan for growth and perhaps evaluate M&A opportunities and how you think about setting goals for the business broadly?

Broadly, yes. So you're right, it does present challenges, but that's what makes it fun. So a lot of the times, we think about this as a feature, the volatility is a feature of our business, not a bug. So as you now know, crypto markets are unpredictable. And therefore, our transaction revenues are unpredictable as well to some degree. And it requires us to be very nimble in our product road map to meet our customer needs. So a quick example, we talked about launching an NFT marketplace in the next quarter or 2, which was not on our product road map in early 2020. But instead, we had to pivot resources given the explosion we saw earlier this year. So we start with this backdrop of a dynamic, volatile business model. And then we add on top the Coinbase culture. So Coinbase is a yes and company. Not of this or that, it's a this and that. And this culture is driven by Brian, who drives us to be multiproduct, and is also constantly challenging us to build faster and launch sooner. In part, this is because we have a humility that we don't know exactly what will be a winner in crypto. This technology is so disruptive and so fast paced that we want to build to meet the industry evolution and our customers' interests. So how do we plan against this backdrop? And our basic framework is to run multiple scenarios and to be nimble. And so when we think about scenarios, we run a vast number of revenue scenarios. And then we layer on loss events or stress events to ensure that we have resources to build through volatility to be able to endure a potential or multiple potential stress events simultaneously. And to be able to be there through our clients and for our employees through any environment. So we think of ourselves as just prepared for everything and are constantly taking new information in to kind of feed these scenarios to say, okay, how would we react in this environment. So think about it in sort of financial services constructs as either disaster recovery planning, business continuity, but as well as like the stress testing that came apart at post-Dodd-Frank. We think about all of that and are very dynamic and planning through these eventualities. Our goal and our North Star is to grow our monthly transacting users. And that is when we think about the most important aspect of our business, that is what we're trying to do. We may think about that differently than other companies who benefit from like linear growth models. And so when we're looking at growth, we look at growth through crypto asset price cycles. We look at growth across similarly situated volatility periods. And so we tease out signal through the noise to say, are we growing in the same market conditions? And are those users then engaging with multiple products? And that is what we really are deeply caring about, growth of users and the engagement of those users on our platform. And we value M&A under the same framework as our operations. So M&A is always in service of our product road map, and we are looking on to bring the best teams and the best products to augment our organic growth.

I think it's super interesting. Just in the last quarter, I think Coinbase increased its head count by like 15%, 20%, just in 1 quarter, which I think is just phenomenal, super amazing. How do you think about being flexible in such a dynamic environment? In terms of scaling your head count and scaling the business, but also your go-to-market? I mean, are you able to change plans on the quick? And can you -- do you have that flexibility to act correspondingly to wherever the crypto volatility cycle is at any given moment?

Yes. So first of all, when we think about adding head count, we're thinking about adding headcount for the long term. We don't think about a business model where we want to hire and then have to lay people off if we see a decline in revenue. So we're always ensuring that we have the right resources that we can manage our business to a crypto winter. And we are hiring with the view that we will not have to do a lay it off at any point in time. So the growth is very specific, and we always want to make sure we can afford it. Those resources and that we're bringing in, sometimes are fungible and so we can repivot those resources to kind of meet the market, and that's where we think about dynamics. So the way that we think about our business and kind of our go-to-market efforts and shifting our strategy is that our strategy is fairly constant, and it actually hasn't wavered in the last few years. However, we do shift efforts and resources dependent on overall market activity to be more concentrated in one aspect of that strategy or another. So first of all, maybe I should just talk about our strategy. We view it as 3 pillars. First, crypto is an investment. And under this, we view that we're the bridge from the feel economy into the crypto economy and most users first step is buying crypto. And so that is the buy, sell, providing custody on it. And here, our products are prime brokerage solutions, our custody solutions, the exchange, we add assets, we look to add more integrations with the payment rails. And we will increase these offerings over time with things like data analytics and financing. Our second pillar is crypto is a new financial system, and this is about rebuilding familiar financial tools and services with crypto, so that people can do things with crypto. Similar to how many people start off with a banking relationship and then they add on additional products over time. We want to be that primary crypto account for our users. The third pillar for us is crypto as an app platform, and here is where we serve the broader crypto ecosystem. We plan eventually to service third-party apps inside our main product and so that we're going to be agnostic between a customer choosing a Coinbase product or a third-party DeFi product, we want to introduce and find the best product for our customers. And then we also plan to externalize a lot of our shared services through Coinbase Cloud. So as the markets evolve, we move resources to accelerate different parts of these pillars, and we may invest more, for example, in adding assets when we see a lot of trading behavior. We may move things like we did in early this year towards NFTs because we saw the growth in that market. So that was always part of our road map, but it was going to be less resource in our initial plans for the year, but we change that as we went through the year.

So it really does seem to have the ability to pivot corresponding to where the market is here. The NFT example is clearly evidence of that. I just want to talk real briefly, one of the questions that we get from investors is, how should we think about the longer-term balance sheet of Coinbase? I mean you are a liquidity hub helping fiat turn into crypto. You've also plan to dedicate a number of profits over each quarter towards more crypto assets and the borrowing and lending there. How should investors think about the longer-term vision of how you plan to use the balance sheet? What the balance sheet may look like? Any character there would be helpful.

That's a great question. So today, we think about our balance sheet is supporting 4 use cases. The first is just working capital, very standard for most companies. The second is we think about using our balance sheet for product support and strategic initiatives, which for us includes supporting products such as post-trade settlement where we enable our customers to pay us later effectively, and we're fronting the capital so that they can trade in the 24/7 instant settlement crypto markets. And then on the strategic investment side, we have an active venture investment portfolio that we are looking to kind of grow the overall crypto ecosystem. So that's the second place we allocate capital. The third is we buffer capital to cover potential loss events or stress events and want to ensure that we can self insure those risks essentially. And then lastly, and I mentioned this earlier, as we think about capital to cover potential operating cash flows, if we experience another crypto winter, i.e., a period with extended low volatility and crypto price declines, where we may see a revenue decline, but we want to keep investing in our resources for product growth. So these were the 4 kind of use cases of our balance sheet. And I go back to what I said earlier, we run scenarios. We forecast these out, we look at what these events will be. And then we build our balance sheet such that we can fund each of those areas. So that is how we think about it. Now in asking your question about crypto because you're right, we have started to make a more conservative investment strategy into crypto. Our long-term goal is to be majority, if not 100% crypto over time, but we are not there today. And so the way that we think about it is perhaps relatively simplistic, but it falls into a few buckets for me, for example. Some of our crypto use cases, I just think of as another currency no different than we have business in Europe where we have to fund certain liabilities in euros or in Japan, where we do yen funding. And some other use cases for us, we think of it as a long-term investment, like a private equity or venture asset. And so when you bucket the crypto into kind of what is the use case for the crypto, we think of it in very simplistic ways just like other companies would do with their treasury management as they're thinking about what is the resources they want to think about as an investment, what do they want to use for operations in various currencies to run their business. And to do that, then we match our crypto assets and liabilities separate from our fiat assets and liabilities. And we hope to just grow that crypto mix over time. So for example, one of the risks that we face today is cyber risk, meaning that we have a hot wallet, that hot wallet has cyber risk exposure. We match crypto assets against that risk. So we're holding a liability for our customers essentially or a potential liability. It's not a realized one. And then we hold equal amounts of crypto assets in cold storage that we always have funds to ensure against that. That's a match funding that I would consider. So we think about that across all of our different processes and use cases. And then the last thing I just want to say here is the accounting for crypto assets today is rather unfortunate and something that we hope will evolve with time. But we do disclose the fair value of our crypto assets in our Qs and can help readers understand what we think the value of these assets really are because sometimes the carrying value and the fair value can be materially different.

Yes. Certainly, I empathize with you on that, particularly in our modeling across a number of different companies. I want to pivot a little bit to this whole motion of decentralization and Coinbase really embracing that opportunity. I guess if you -- if we were to assume like a fully decentralized ecosystem for crypto, where does Coinbase fit in that equation? Like where are you in the value chain? And how do you drive value for shareholders and a fully decentralized kind of environment?

Such an interesting question, Pete. We get this from investors often, so thank you for asking it. The short answer is that we believe that Coinbase and DeFi can and will successfully grow and coexist. So I think we should like back up here for a second because there's a lot of terms in the crypto world. So maybe for listeners, what does decentralization even mean? And why will it take off? So you'll hear about us talking about decentralized finance or DeFi for short, which is, in short, a transaction that requires no intermediaries. And these are built on smart contracts and these smart contracts essentially perform functions with predetermined conditions and they will execute a transaction without an intermediary. They lessen the reliance on intermediaries and platforms for data privacy, storing financial information, time to process transactions, et cetera. And so just to kind of put this into real-world examples, sometimes when we send international payments and we wonder where did the money go. Like I sent it on a Thursday, and I'm waiting for the money to show up in my other account. On crypto, this is instant. You can see on the blockchain, it just settles and there's no mystery of the middlemen and intermediaries that conduct these international transactions today. So how do we think about Coinbase in relative to DeFi? So earlier, I talked about our crypto as an app platform strategy, and this is where this all comes in. As cryptos and app platform will help defy in 2 ways. One, we're building tools, to accelerate the builders in the ecosystem through Coinbase Cloud. And we believe this opportunity itself will be large in the future because more and more companies are going to want to offer crypto services to their end customers. So the second thing we do is that we're helping with distribution. Just like we've been a bridge to crypto by some, will be a bridge to DeFi. Today, a very small number of people have access DeFi where over 200 million users, as I mentioned earlier, have access crypto worldwide. And we think Coinbase can bring billions of users to DeFi by making it easy to use and obviously, in the complexity, just like we did with introducing our first users to be able to buy crypto. So we believe this feature is going to include both a combination of centralized and decentralized products. And we want to be the bridge to these worlds and help our users find the right products for them. So lastly, I want to leave you with this thought. We believe that it's starting with DeFi will actually disrupt the entire web ecosystem. DeFi is a harbinger of Web 3.0 and all Web 2.0 businesses will get disrupted by this new technology. And we think NFTs are a great leading indicator of how smart contracts can disrupt the greater economy. So we think there's a lot here that will unravel over the next few years or decades.

A lot to think about there, certainly be following on that notion, the Coinbase Cloud, in particular, on a go-forward basis. I think I agree with you that certainly has the opportunity to disrupt a lot of different areas within tech and finance more broadly. I want to talk a little bit about where the model is today, particularly on the retail side? In last quarter, it was a little difficult, I think, for some, including ourselves and trying to understand some of the behaviors between Coinbase Pro user and the more casual user. Can you just talk about generally what type of patterns that you see between the two? That's kind of the first thing. How do you -- the second, how do you deliver different levels of value for each group? How do you think about what levels of product that you need to deliver versus the Pro user versus the more casual user? And then I have one follow-up on that. But if you could give us a sense on that, that would be helpful.

Sure. And this is the history of Coinbase where we developed 2 different products to really go after these 2 different customer segments, as you know. So our Coinbase consumer app was a simple, easy-to-use interface. It allowed users to buy crypto with a few clicks. And then what we're doing is that is really the primary financial account that I mentioned earlier. So we can introduce new products and services to those users like staking or card and pay and other functions in one experience. We independently at that time had grown up Pro, which was a platform for sophisticated traders with advanced trading features, candlestick charts, et cetera. But that was really more of a robust trading platform. And so what we saw behavior-wise for these 2 different customer profiles is during periods of low volatility and low crypto asset prices, we observed Pro users to be more resilient because they were active traders. They were market participants on a regular basis where the consumer was a consumer that was not in the market every day. They really would come in when they saw volatility or headlines in crypto. And so we tended to see more engagement and more behavior on the consumer side during periods of high volatility and rapidly moving price environments. What we're doing now is we're looking to bring those 2 products into 1 unified experience so that we can help our customers pick the right tools for them and engage in 1 tool versus running these as 2 independent platforms. And what you can see though today, when we kind of like zoom back out, customers just really pick up what's right for them. Customers have always had the opportunity to go to these 2 platforms, so we haven't seen to date any migration of customers between these 2 experiences. And they really choose the product that meets their needs, which is trust, safety, ease of use, compliance and then the breadth of crypto opportunities that they can have.

That's interesting. So 1 unit really combining the Pro and the more casual interface there. But then on the other end of the spectrum, you do have a lot of non-crypto native firms, regular equity trading firms, payments companies that are offering Bitcoin acquisition services or that kind of thing. How relevant is that casual user still to the Coinbase ecosystem? And how do you maintain that relevancy? Is it continued education? Is it ease of onboarding, connecting bank accounts so on and so forth? And is that really the -- how are you thinking about maintaining relevancy in that side of the equation and competing against some of these fintechs that are taking a different approach?

Yes. So first of all, we are so excited. As I mentioned earlier, the fintechs will have a play in crypto. It's just growing the total addressable market and driving a lot of innovation in this space. So I think we need to just focus first and foremost on that our goal is to compete on product and great user experiences on our platform. And we are 100% crypto-focused and crypto native. And what that means to us is that we are competing for these users on what they can do with their crypto. So on Coinbase, they can come in and they can access over 100 assets to buy and sell. And we've seen increasing adoption of what we call the long tail of crypto. People have moved beyond Bitcoin and Ethereum and are looking to access these new DeFi apps. They're looking to access NFTs and a broad range of transactions. And what this means to us is that we need to provide access to those assets and that we then need to provide the ability to use those assets as more than just an investment. And so what we've seen is great adoption of our other products and services that allow users to earn a yield on those assets or spend on their Coinbase Card. And what I would say here is it's just technologically hard to add support to new assets. These are underlying protocol differences and protocols fork and have air drops, and you have to monitor them, providing staking is you have to provide 24/7 node validators like you have to do active work to be able to offer these tools. And that is where Coinbase really differentiates ourselves versus the fintech platforms at this time is that we are building on the blockchain. We are natively integrating with the blockchain and being able to provide on-chain governance, on-chain staking, on-chain send and receive in a variety of assets. And that's where we're investing and think that at this point, that is what our customers are looking to do, and that is where we will compete.

So these outside fintechs more or less creating a top of the funnel opportunity for Coinbase. And as they graduate, Coinbase is there to facilitate the next level of service, so on and so forth.

And that's where we are today. They're innovating the UX layer, and we're innovating through the stack today.

I want to pivot to the institutional side of the business, which has been super fascinating with a lot of corporates that have been coming on buying crypto assets. How would you explain how some of these treasury departments are getting around, maybe getting around is not the right word, but navigating their own internal processes to actually acquire crypto and hold it on their balance sheet? Maybe you could talk about some of the motives that you're hearing from some of these corporate players out there for getting into more crypto? And do you think this is a trend that's going to continue?

I do, I do. So thematically, we see a few reasons why institutions are approaching crypt. So first, it's there being able to see crypto for what it is. It's a new investable asset class. And more so today, they are seeing it not as a single asset class but a foundation on which every asset, debt, equity, collectibles, property, titles and currencies can live and move. And so they're starting to see the future of Web 3.0 and wanting financial exposure to these trends. And so it starts with an investment in Bitcoin typically, and it started as a hedge against inflation and an asset where they thought they could get differentiated returns quickly move them to Ethereum as an app platform where they were starting to see people build new DeFi apps, NFTs and more on Ethereum to now moving to take for exposure to DeFi itself. So they're looking for exposure to this new world. Second, what we see is institutions are incorporating crypto into their product offerings. So many people are observing that their customers may want the opportunity to buy in crypto. And for the first step of enabling them -- their customers to buy in crypto, they need to think about their treasury management practices in crypto. And so they invest in crypto first to understand the controls and what it means to hold crypto on their balance sheet. Third, I would say the trend is that crypto is highly adopted by the younger millennial audiences. And corporates are now thinking about crypto payroll because many of their employees are interested and want this financial exposure. And so we're seeing people come at it from many ways. And I think that those underlying secular trends about just the broad consumer adoption is driving corporates and institutions to think about how they integrate it into their business models. So I do see each of these trends continuing to grow and deepen.

I would imagine being a public company, you have a -- you've almost increased your sphere of influence more broadly. So I'd imagine a lot of corporates or even asset managers who are looking to get into crypto, maybe you're the first stop. Is -- are you finding some of that networking benefit towards, I guess, the greater sphere of influence that Coinbase holds today? Being a public company, has that resonated? Has that helped drive more potential clients to the Coinbase platform?

Absolutely. We thought of going public is just an important mark of transparency, defining that we are a company with proper rigor and controls and giving people more insight into how we operate. And so that definitely introduced more and more potential clients to our platform.

And then extending that question, if you think about how -- Brian has been very vocal in his feedback, I think, for the industry as a whole. And you're so much as a category leader, spokesman for a lot of what's going on in the industry, how do you think about Coinbase's influence currently today with tech firms, with financial institutions with even regulators? How are those relationships kind of performing right now? I know it's early days, but if you could put some color on those relationships and how you're working with some of these outside parties?

Sure. So broadly speaking, we're talking to everybody in crypto as we believe that we want to create a level playing field. We want to drive clarity and partnership to create this new ecosystem. To create a new crypto economy, we can't be the only player. And so we're looking to help hundreds of companies in their journey into crypto, and that comes in multiple ways. That comes in our ventures investments where we create funding for new start-ups who want to build in crypto that comes through business partnerships, that comes for us building the tools to the Coinbase Cloud platform that I mentioned earlier, where we can white label our tooling and enable other financial institutions to build in crypto using our tooling as the back end, but they would still offer direct to their customers. But the way that we think about it is that we want to be a resource. So maybe a good example to highlight here is our foray into policy. And so before we published our policy proposal, which we did a few weeks ago, we completed more than 75 meetings with stakeholders in government, industry, academia to really shape the proposal because we wanted to represent a consensus point of view. And so we took a step further by publishing it to get a hub for feedback, and we try to be inclusive in democratic by design. And so this speaks to sort of how we want to be seen in the industry and how we think about partnering that it's not all competition. We want to be out there working with others because we think that the promise of this technology can bring economic freedom on a global basis. And we think that, that spirit of financial inclusion that we need to all understand these tools and these techs and then people compete based on product and based on other things, but not on either difference in regulatory views or difference in their ability to learn about the technology platforms.

It's an interesting concept. If I think about it, the technology is moving at a very rapid pace. I guess some commit the argument that the regulatory side hasn't been able to keep up with that pace of innovation. Do you feel that maybe because policymakers are putting more attention into crypto and any regulatory framework behind that process, at least on the policy side, could get more efficient, could become a bit more quicker to react to some of the technology progress that we've seen being granted, this is likely going to be a very, very long process, but just your sense on the added attention that you've been getting in the resources on the policymaker side?

We are optimistic, but it is a difficult process, as you pointed out. So we put forth a policy proposing that it would be thought through a fully separate regulator. And the thought process here is that we start with the belief that the -- this is not a single asset, but a foundation on which every asset can be built. And this foundation is important to understand because these innovations are transformational, but they don't fit easily within the existing financial system that we have today, and this is what makes it hard because those existing regulations assume that the structure of our financial markets will remain largely as they've been in the past. And these markets are predicated on the existence and the ongoing existence of a series of separate financial market intermediaries exchanges, transfer agents, clearing houses, custodians, brokers, because these businesses never contemplated a distributed ledger. They never contemplated the blockchain technology could exist. And so we think it's imperative that we start thinking about this through a new lens, where we regulate digital assets based on the technology and that we don't hamper this innovation by just sticking around pegs and square holes. So one of the things that we like to say is that the current regulatory infrastructure was drafted, was put in place before computer existed. I'm talking about 1933. And so just putting the full spectrum of digital assets and what we can do here into the supervisory codifications that arose before these computers runs the risk of shuffling innovation at this transformational technology. And we really believe that this innovation can grow and flourish here in the United States, and we want to create that opportunity here. And so we believe we have common goals, Coinbase regulators and other financial institutions, all share beliefs about the importance of preventing market manipulation, ensuring consumer protection, protecting against the listed activities. We agree on the goal, but I think we have different views on how to get there. And our hope is that through creating someone to focus and understand this, that we can get there through technology in a different way. And so I'm optimistic. We are spending a lot of time, as I just mentioned, meeting with everyone trying to get an industry-wide view because our goal here is fair competition. It's interoperability and its innovation with a level playing field and clear regulatory framework. That is the goal here. And I think if we think that we can do that, it will just accelerate growth and opportunity in the United States and gives us that financial inclusion that we think would be really invaluable on a global basis.

Got you. That's super helpful commentary right there. Unfortunately, we only have time for one more. I'd like 55 more questions to ask, but only time for 1 more, unfortunately. I want to talk about how Coinbase thinks about its strategic road map over the next 2, 3 years certainly from a capabilities perspective? And you discussed how you pivoted to ramp up the NFT opportunity more quickly here, though. But how should investors think about Coinbase adding capabilities over time? Are you a builder? Are you a buyer of assets? And how do you see the product portfolio, I guess, evolving over the intermediate term?

Perfect. I'll go back to a couple of comments I made earlier. We're and company, but it goes back to our strategy pillars. Crypto as an investment, crypto as a financial asset and then crypto as an app platform. So those are the 3 pillars. And we will be building and buying tools to support the strategy. It will be a combination. We will be continuing to invest in ventures as we believe it supports the broader ecosystem development. Sometimes it provides M&A opportunities. Sometimes it provides partnership opportunities. But importantly, it's just growing the ecosystem and creating a lot of great products out there. We'll be expanding internationally, which is a large focus for us. And really, our goal is just to continue to introduce new users, grow our monthly transacting users with a goal of bringing 1 billion people into crypto and driving economic freedom. So it is and, but it comes back to product suites within those 3 strategy pillars.

That's fantastic. Well, Alesia, thank you so much. This was a fascinating conversation. We must have you back next year. And for the rest of our viewers, up next, we have a keynote with Pfizer, [ Ash ] will be hosting that. Alesia, thanks again. It was great to have you.

Thanks, Pete.