Coinbase Global, Inc., is an American publicly traded company, which is currently the third-largest crypto exchange by volume traded. It can be said that the exchange has been hit hard by a mixture of regulation-related fears and FTX collapse that diminishes investor confidence in the crypto industry.
Coinbase Stock Analysis
Coinbase stock (NASDAQ:COIN) has dropped to an all-time low of $32.40 per share.The share price of Coinbase dropped by 6% in one-week. However the stock has recovered and is trading at $33.11 pre-market, according to Yahoo Finance.
In its 5-days price performance, COIN was trading at 34.44 on Dec. 23, 2022, while it previously closed at the price of 32.53 on Dec. 28, 2022. The decline in its share price is clearly seen at almost 6%. This condition was not-good for Coinbase investors this year. As of this year, Coinbase’s stock plummeted almost 87% over the year and around 24% in the past month.
Additionally, its revenues have also fallen. As Coinbase has reported its net revenue of $576 Million for the third quarter of this year, and a 28% decline from $803 Million in the previous quarter.
Furthermore, the transaction revenue dropped 44% quarter-over-quarter, while only fewer users were active on the exchange.
For this kind of situation that Coinbase is going through, the firm has undertaken some strict measures to provide some support to its finances. As it laid off around 1,100 employees or roughly 18% of its workforce in June 2022, and reasoned “economic conditions” and saying it “grew too quickly” in its statement.
Although some of the prominent investors have recently shown their trust in the Coinbase. Cathie Wood-led investment house Ark Invest continued its planning of buying Coinbase stock. She added a total of 296,578 Coinbase shares to its exchange-traded funds (ETFs) last Wednesday.
An Interview of Brain Armstrong
The CEO of Coinbase, Brian Armstrong, sat down with Dan Primack, the Biz editor at Axios, to talk about the current state of Coinbase, crypto, and his thoughts on crypto regulation in 2023.
During the interview, when asked a question that “Coinbase succeeds when crypto trading volume and prices rise. So what’s the argument for buying Coinbase stock, as opposed to just buying bitcoin or a basket of crypto assets?”
He replied, “I think people should do both. The bull case for Coinbase is we’re the leader in the market from a trust point of view and the largest [exchange] in the U.S. The market is giving us very clear feedback that they want to work with trusted companies if they’re going to be centralized actors…”
“We’ll also be a beneficiary of increased regulation and diversifying our revenue stream away from trading fees. For example, 36% of our Q3 revenue was subscriptions and services,” he further added.
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