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Crypto ‘eating TradFi’s lunch’ as $5.75B Coinbase revenue beats Nasdaq

Coinbase and DeFi pose serious competition for traditional exchanges as Bitcoin ETFs beat gold by assets under management.

Bitcoin and cryptocurrency exchange Coinbase are beating Nasdaq in terms of revenue in 2024, the latest data shows.

Figures uploaded to X on Dec. 17 by Jamie Coutts, chief crypto analyst at investment firm Real Vision, show 12-month exchange revenue nearing $6 billion.

Crypto markets’ Q4 transformation has led to the sector vying with Wall Street for supremacy when it comes to 2024 performance.

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Bitcoin ETFs Bleed $226M While Ethereum Funds Feast on $130M Windfall

Coinbase Aims to Raise $1 Billion Through Convertible Bond Sale as Shares Spike

Coinbase Aims to Raise  Billion Through Convertible Bond Sale as Shares SpikeCoinbase Global, Inc. has unveiled its strategy to generate $1 billion through the issuance of convertible bonds set to mature in 2030. This plan includes a provision for initial buyers to acquire an extra $150 million to address any over-allotments. Coinbase revealed that the proceeds would be allocated for “working capital and capital expenditures.” Coinbase […]

Bitcoin ETFs Bleed $226M While Ethereum Funds Feast on $130M Windfall

Coinbase Stock (COIN) Leaps in Response to FTX Bankruptcy Filing

Coinbase Stock (COIN) Leaps in Response to FTX Bankruptcy Filing

Top US crypto exchange Coinbase (COIN) is seeing its stock rise in the aftermath of the FTX Exchange collapse. Coinbase’s shares opened at $47.53 and fell to $46.25, but after news broke that FTX had filed for bankruptcy, the stock shot up to $56.68, an increase of more than 22%. At time of writing, COIN […]

The post Coinbase Stock (COIN) Leaps in Response to FTX Bankruptcy Filing appeared first on The Daily Hodl.

Bitcoin ETFs Bleed $226M While Ethereum Funds Feast on $130M Windfall

Disclosures Show Shopify’s CEO Bought $3M Worth of Coinbase Shares During the Past 2 Months

Disclosures Show Shopify’s CEO Bought M Worth of Coinbase Shares During the Past 2 MonthsPublic records show that Shopify’s CEO Tobias Lütke has purchased close to $3 million in Coinbase shares during the last 60 days. Lütke became a Coinbase board member last February and because he is a Coinbase associate, he’s required by law to submit his trades to the U.S. Securities and Exchange Commission (SEC). Since August […]

Bitcoin ETFs Bleed $226M While Ethereum Funds Feast on $130M Windfall

Goldman Sachs Downgrades Coinbase to Sell Rating — Analyst Says Firm Needs to Make Cost Base Reductions

Goldman Sachs Downgrades Coinbase to Sell Rating — Analyst Says Firm Needs to Make Cost Base ReductionsAnalysts from the multinational investment bank and financial services company Goldman Sachs Group Inc. have downgraded Coinbase Global Inc. in a note to investors on Monday. Today, Coinbase shares are down 83.68% from the stock’s all-time high (ATH) in November 2021. Goldman analyst William Nance explained that his group of market strategists believes “Coinbase will […]

Bitcoin ETFs Bleed $226M While Ethereum Funds Feast on $130M Windfall

Coinbase junk bonds tank amid market rout and creditors’ fears

“Nothing about Coinbase changed this week, we are the same company we were yesterday, or a year ago. If anything, we are in an even stronger position given our balance sheet,” assured Coinbase CEO Brian Armstrong.

The price of Coinbase’s junk bonds are tanking amid an underwhelming performance in Q1 and fears over what could happen in the event of a bankruptcy.

According to bond trading data from Trace Bonds, both of Coinbase’s junk bond offerings have dropped roughly 17% and 5.2% since its Q1 report on May 10 to sit at $63 and $62.31 at the time of writing. Overall they are down 20% and 19% apiece since the start of this month.

Junk bonds are a form of corporate debt issued by firms that do not have investment-grade credit ratings. Firms borrow a certain amount of money via the junk bond offering, and set a maturity date (date of return) and an interest rate that they will pay on top of the borrowed capital.

As junk bonds have a lower credit rating, they command higher interest rates than investment-grade corporate bonds. In Coinbase’s case, it raised roughly $2 billion in September across two evenly spread offerings at 3.375% over seven years and 3.625% over 10 years.

Notably, both junk bond offerings launched at $100 each, and have been steadily trending downwards ever since. The sharper than usual drop this month however suggests that investors are losing confidence in Coinbase moving forward.

The price of Coinbase stock (COIN) has also dropped 20% since the date of its Q1 report, although investor sentiment was already bearish beforehand, with the price dropping a hefty 50% since the start of May.

Bankruptcy proceedings disclosure

The major crypto exchange posted Q1 losses of $430 million alongside a 27% decrease in revenue compared to the first quarter of 2021.

Shortly after the report had been released, concerns were raised over a disclosure in the Q1 report regarding the fate of user’s assets if the firm were to be “subject to bankruptcy proceedings.”

The disclosure noted if the company were to go bankrupt, user’s digital assets held on the platform may “be subject to bankruptcy proceedings” and could see them treated as “unsecured creditors.”

This appeared to cause fears on two ends of the spectrum, as users were concerned that they may not be able to retrieve their assets if Coinbase were to dissolve. But bond hodlers appeared concerned by the idea that user’s could still have some claim on Coinbase’s assets as they expect to be ahead of them in t line.

Coinbase CEO Brian Armstrong attempted to squash fears however, after he noted on Twitter that “we have no risk of bankruptcy, however we included a new risk factor based on an SEC requirement called SAB 121.”

Related: Crypto-associated stocks hammered as COIN and HOOD drop to record lows

Earlier today Armstrong also shared a note concerning the past week of events.

The CEO called for calm despite admitting how “it can be scary to see our stock price down with associated negative headlines,” as he suggested that the firm can handle the current market downturn:

“In times like these we need to step back, and zoom out. Nothing about Coinbase changed this week, we are the same company we were yesterday, or a year ago. If anything, we are in an even stronger position given our balance sheet.”

“This last bull cycle has generated tremendous profit and cash that adds to our resiliency, and we have built an incredible team with some of the best talent in the world,” he added.

Bitcoin ETFs Bleed $226M While Ethereum Funds Feast on $130M Windfall

Jim Cramer: Coinbase stock is cheap, put 5% of your portfolio in crypto

Jim Cramer, the host of CNBC’s Mad Money thinks Coinbase is the “natural repository of crypto” and has recommended buying the stock.

Jim Cramer, the host of CNBC’s “Mad Money” has recommended buying Coinbase stock, and suggested that 5% of investment portfolios should be allocated to cryptocurrency.

Cramer made the comments in the Lightning Round on Aug. 25 in response to a caller who asked whether buying Coinbase stock was a good way to get crypto exposure. The 66-year-old finance personality stated that while Coinbase’s listing went “very poorly” he views it as a big player in crypto:

“I think Coinbase is inexpensive. I don’t really care for management because I think they let out a lot of stock when they started. I was against that. They should’ve been buyers, not sellers. I think the listing went very, very poorly. I think the company is the ... natural repository of crypto.”

Coinbase Stock (COIN) stock has seen a lackluster performance since its listing on the Nasdaq exchange in mid-April. At the time of writing, COIN is sitting at $248, down 27% from it's all-time high of $340 on April 16.

However, the firm had a strong performance last quarter with its Q2 report posting net profits of $1.6 billion, compared to $32 million in Q2 2020.

Cramer added to his comments by suggesting that direct exposure to crypto should also be an option for investors:

“I own Ethereum directly. I think you should have up to 5% of your portfolio in crypto. I am a believer in crypto.”

The CNBC host is a former hedge fund manager and co-founder of financial news website TheStreet.com. While Cramer has remained relatively consistent on Ethereum (ETH) lately, he has had an on-again-off-again love affair with digital gold since he first bought Bitcoin (BTC ) back in December 2020.

In fact, he’s all over the place. In the middle of a crypto downturn in June, Cramer urged investors to be “patient” with BTC — but ten days later his patience ran out and he boldly claimed that BTC is “not going up because of structural reasons,” and revealed:

“Sold almost all of my Bitcoin. Don’t need it.”

In March, Cramer bullishly stated that BTC made him a “ton of money” while his investments in gold and stocks had let him down. In April he stated that he had cashed out 50% of his “phony money” BTC to pay off his mortgage.

Cointelegraph reported on May 5 Cramer said he owned “a lot of Ether” after he initially bought the asset to bid on a Time Magazine NFT.

Related: Auditors reveal USDC backing as Jim Cramer sounds alarm over Tether’s mad money

Bitcoin ETFs Bleed $226M While Ethereum Funds Feast on $130M Windfall

Kraken rethinks direct listing plan following Coinbase’s lackluster performance

Kraken CEO Jesse Powell is having second thoughts about a direct listing in light of Coinbase going public, and is potentially leaning towards an IPO instead.

Jesse Powell is rethinking Kraken’s plan to go public which is set for late 2022, following the uninspiring performance of Coinbase stock (COIN) since its launch on April 14.

Speaking with Fortune on June 11, Powell stated that in light of the performance on Coinbase’s direct public offering, the firm is now considering an initial public offering (IPO) more “seriously now,” as the firm is looking to avoid potential issues a direct listing presents:

“Not having lock-ups, having billions of dollars of insiders be able to dump their shares, you know, on day one [...] I think it has a dampening effect on the market.”

“And, you know, the IPO is just a very different process,” he added. Kraken began discussing the idea of public listing in March, following Coinbase's plans to pursue a direct listing on the Nasdaq.

Powell then followed that up in April with a timeline suggesting the firm was potentially looking to go public sometime in 2020, and told Cointelegraph that its public listing would be “too big” to go via the route of a special purpose acquisitions company (SPAC).

Related content: To IPO or Not to IPO? SPAC is the question

The roadmap is still not entirely clear, with Powell stating in the interview with Fortune that “we'll see how the market looks in the second half of next year,” before deciding on which method to take for a public listing.

“That's sort of where we're targeting. You know, hopefully by then we have more analyst coverage out and there's just more of a track record of growth for the industry,” he said.

Coinbase’s stock COIN launched with a price of around $327 on April 14, and despite the enthusiasm leading up to the firm going public, its performance has been underwhelming — decreasing around 32.4% since to $221 as of today, according to data from TradingView.

During the Interview, Powell noted that the lackluster performance of COIN may be partly due to the anti-crypto sentiment held in traditional finance and Wall Street. The Kraken CEO thinks that there a lot of players that “actually have a lot to lose” from the success of crypto, and predicted that a lot of players will resist it for “as long as possible,” noting that:

“I think you might be seeing people just facing this cognitive dissonance of becoming increasingly aware of the impending doom that's coming to the legacy financial system.”

 Patrick O’Shaughnessy, an analyst for Raymond James, an independent investment bank with a net of worth $17.76 billion, said in a note to clients regarding COIN on June 10 that:

“We don’t see a structural barrier to entry here and therefore expect significant pricing degradation over time, with growth in non-transaction revenues hard-pressed to offset this.”

From O’Shaughnessy’s perspective, Coinbase is too reliant on transaction fees to generate revenue, and expects the market to provide cheaper alternatives in the near future.

“We view it unlikely that over the long-term retail customers will continue to happily pay a 1%+ transaction fee, particularly if/when trusted financial institutions begin to offer trading and custody,” the analyst noted.

Raymond James has rated COIN as “underperform”, which is the label the firm gives to assets which it expects to underperform the S&P 500, or its sector, within the next six to 12 months and should be sold.

Powell was also quizzed on whether going public through a special purpose acquisitions company (SPAC) would be an option for the crypto exchange, and he reaffirmed the views he'd earlier expressed to Cointelegraph:

“It might have been possible a few years ago, but today I think we're too big to really consider doing a SPAC. So we're still on track for a public listing.”

Bitcoin ETFs Bleed $226M While Ethereum Funds Feast on $130M Windfall

JPMorgan, Goldman Sachs Initiate Coverage of Coinbase Stock — up to 60% Price Upside

JPMorgan, Goldman Sachs Initiate Coverage of Coinbase Stock — up to 60% Price UpsideInvestment banks JPMorgan and Goldman Sachs have initiated coverage of the Coinbase Global stock. JPMorgan gives Coinbase an overweight rating with a 60% upside potential while Goldman Sachs begins with a buy rating. JPMorgan, Goldman Sachs Now Covering Coinbase Stock A couple of major investment banks initiated coverage of the Coinbase Global stock (NASDAQ: COIN) […]

Bitcoin ETFs Bleed $226M While Ethereum Funds Feast on $130M Windfall

Coinbase Shares Down 27%, $1.2B Convertible Debt Deal Announced, Shareholder Letter Says ‘Competition Increasing’

Coinbase Shares Down 27%, .2B Convertible Debt Deal Announced, Shareholder Letter Says ‘Competition Increasing’Coinbase shares have dropped in value during the last month after opening at $342 per share. The company’s shares have dropped over 27% to $248 per share since the Nasdaq listing in mid-April. On Monday, the firm further announced intentions to sell $1.25 billion of convertible debt. Coinbase Shares Drop Below Reference Rate Coinbase Global, […]

Bitcoin ETFs Bleed $226M While Ethereum Funds Feast on $130M Windfall