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Highlights
- Coinbase Global, Inc. (NASDAQ:COIN) is a cryptocurrency exchange that provides a regulation-compliant platform for retail and institutional investors.
- Coinbase was founded in 2012 and launched its IPO in April 2021.
- The Coinbase (COIN) stock fell 10% in the premarket on Monday.
Coinbase Global, Inc. (NASDAQ:COIN) stock continued its downward slide on Monday after losing 13.5% last week. It was down 10% to US$$172.78 at 7:49 am ET.
Overall, the crypto market has retreated sharply in recent days. Bitcoin’s price almost halved to around US35,000 from its all-time high of about US$69,000 in November last year.
Several factors might be at play for the market’s latest plunge. Observers say the Omicron factor coupled with the Fed’s expected interest rate hikes may be playing a spoilsport.
Bitcoin was down around 10% last Friday after the Russian central plan proposed a ban on crypto payments and mining in the country, citing the risk of financial stability.
Coinbase, founded in 2012, saw a warm reception during its IPO in April last year. The stock was sold at US$250 apiece on the first day of its trading on NASDAQ.
Also Read: In tit-for-tat move, US suspends 4 Chinese airlines in Omicron row
A similar dip in the crypto market was observed after the Chinese government renewed its crackdown on crypto mining and trade in September 2021.
However, the market regained swiftly, buoyed by positive news from the industry. The Coinbase stock surged in October after announcing trading services for non-fungible tokens. In addition, in the same month, Facebook had partnered with Coinbase for its digital wallet, Novi.
But the stock has since been falling.
Also Read: Falling prices stoke a winter of discontent for the crypto market
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Financials:
For the nine months ended September 30, 2021, the company earned revenue of US$5.34 billion compared to US$0.692 billion for the same period in 2020.
Its net income was US$2.78 billion or US$11.19 per share diluted compared to US$0.146 billion or US$0.55 per share diluted in the same period a year ago.
Coinbase has a current market capitalization of US$50.3 billion and a forward P/E for one year of 14.52. Its 52-week stock price movement was between US$429.54 and US$186.86.
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The Wilmington, Delaware-based company provides a regulation-compliant trading platform for retail and institutional cryptocurrency investors. It acts as a custodian of digital assets.
The stock is trading around 55% down from its highest price of US$429.54 on April 14, 2021.
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Bottomline
The Coinbase stock fell 34.17% in nine months, compared to a 1.7% decline of NASDAQ 100 Technology Sector Index (NDXT) in the same period. The crypto market fell from a valuation of US$3 trillion in November 2021 to US$1.51 trillion on Monday. Given the volatile nature of the market, investors should exercise due diligence before investing in digital assets.
