The Bitcoin crash He hit Coinbase with great difficulty.
The cryptocurrency brokerage firm reported a first-quarter loss late Tuesday with revenue down 27% from a year ago, missing Wall Street expectations. Queen Piece Shares fell more than 25% on Wednesday and hit an all-time low.
Coinbase stock is now down more than 75% this year and is trading 85% below its all-time high since November. Stocks have lost more than half their value in the past week alone.
The decline in Coinbase shares coincides with the massive decline in the value of Bitcoin, Ethereum, and others. Cryptocurrency over the past few months. Coinbase said in its earnings report that about 48% of its transaction revenue came from bitcoin and ethereum in the quarter.
Bitcoin price plunged below $30,000 on Wednesday after Consumer Price Index Report on inflation.
As a result of the volatility, Coinbase reported a sharp decline in the number of users, trading volume, and assets from the fourth quarter.
“The first quarter of 2022 continued the trend of lower crypto asset prices and volatility that began in late 2021,” Coinbase said. A letter to shareholders. But the company added that Coinbase remains “more excited than ever about the future of cryptocurrency.”
However, investors appeared to be wary of Coinbase’s new language Recording quarterly earnings With the Securities and Exchange Commission warning of the dangers of bankruptcy.
The company said that “in the event of bankruptcy, crypto assets that we hold on behalf of our clients may be subject to bankruptcy proceedings and such clients may be treated as generally unsecured creditors.”
This could mean that customers will not be able to access the funds if Coinbase declares bankruptcy.
But Coinbase CEO Brian Armstrong tried to reassure customers and clear up any confusion about the bankruptcy talk. at Tweet series Late Tuesday night, Armstrong wrote that “your money is safe on Coinbase, just as it has always been” and added that “we have no risk of bankruptcy.”
Armstrong wrote that the company was required to include bankruptcy warning language due to “newly required disclosure of public companies holding crypto assets to third parties” as a result of SEC rules.
Coinbase is arguably the most popular cryptocurrency company. It sparked a lot of interest earlier this year for a strange (but noisy) Super Bowl ad that contained nothing more than QR Code That moved around the screen for 60 seconds.
Coinbase said in its earnings report that the announcement “led to significant improvements in our brand awareness, preference and buying thinking.”
Coinbase has also been busy adding other cryptocurrencies to its platform, such as Cardano. It has also launched a market for Irreplaceable icons (NFTs), the digital asset that has become It is becoming increasingly popular in the world of art and collectibles.
However, none of this was enough to stop the massive slide in Coinbase stock.
company It was released to the public last year Through the direct listing of its shares on the NASDAQ, it was immediately valued at nearly $100 billion. Coinbase’s market cap is now hovering around $15 billion.
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