Coinbase Stock Hits New Lows, Plummets 6% in Five Days
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Coinbase stock (COIN) has fallen to an all-time low of $32.40 per share, dropping 6% over the past five days. The stock has recovered some and is trading at $32.65 pre-market.
This caps off what has been a brutal 2022 for Coinbase investors, with the company’s stock plummeting almost 87% over the year and over 23.19% in just the past month.
The exchange, which is currently the third-largest crypto exchange by volume traded, has been hit hard by a mixture of regulation-related fears and FTX contagion diminishing investor confidence in the sector.
Revenues at the firm have also tumbled. The company reported net revenue of $576 million for the third quarter of 2022, a 28% decline from $803 million in the previous quarter.
In addition, transaction revenue—where Coinbase derives most of its revenue—fell 44% quarter-over-quarter, as fewer users were active on the exchange.
The firm has undertaken some harsh measures to shore up its finances, laying off 1,100 employees or roughly 18% of its workforce in June, citing “economic conditions” and saying it “grew too quickly” in a statement.
Coinbase fans buy the dip
Still, some prominent investors have recently shown confidence in the company.
Cathie Wood-led investment house Ark Invest continued its strategy of buying Coinbase stock, adding a total of 296,578 Coinbase shares to its exchange-traded funds (ETFs) last Wednesday.
Though Coinbase’s performance has hardly been stellar, tech stocks as a whole are down significantly this year across the board.
The Nasdaq Composite, where Coinbase is listed, is down a whopping 34.40% so far in 2022.
In fact, the exchange has actually fared much better than many others in the crypto space, specifically mining firms.
Bitcoin mining firms Riot Blockchain and Marathon Digital Holdings have fallen 84.96% and 90.15% year to date, respectively.
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