Please select the second broker

Author: Alan LittleDate: 2022-05-12

CCoinbase (COIN) -23% as regulatory filing sparks bankruptcy fears

Coinbase (COIN) shares plunged on Wednesday after the crypto company posted a surprise Q1 loss and sparked brief bankruptcy fears with a regulatory filing.

Coinbase Global (COIN) shares cratered 23% on Wednesday after it warned that transaction volumes will decline in Q2 amid concerns that the cryptocurrency market is running out of steam.

Coinbase’s performance may already be an issue for investors after revenues slumped 35% to $1.17bn during the three months to 31st March, which was well below the Wall Street consensus.

The top-line struggles and a weakness in total trading volume, which fell from Q4’s $547bn to $309bn in Q1, contributed to a surprise loss of $430m, or -$1.98 per share.

Coinbase’s Monthly Transacting Users (MTUs) also fell 22% to 8.9 million, to accompany the 7% in overall trading volumes, and are expected to be lower again in Q2.

Plummeting bitcoin prices have raised concerns about the broader health of digital assets in the long term, a trend that is unlikely to help Coinbase’s quest to bounce back to a profit.

Goldman analysts said that they were pessimistic about that possibility in the near term as they downgraded COIN to neutral.

JPMorgan, which cut its price target from $258 to $171, noted: “Revenue was below expectations across the board, while expenses ramped more quickly than anticipated to drive earnings meaningfully lower.”

Canaccord Genuity continued with a buy rating but slashed its price target from $275 to $120.

Investors were also spooked by a regulatory filing that suggested that the firm could declare bankruptcy – however, its chief executive Brian Armstrong tweeted soon afterwards that there was “no risk” of this happening.

Coinbase’s tough day was compounded as its shares plummeted 23% on the Nasdaq to wipe off around a quarter of its market value and extend its year-to-date decline to 67%.

Scam Brokers, Broker Complaints

Are you aware of a scam broker or want to make a broker complaint?

We want our site users to find good brokers to trade through and to be warned off bad brokers. We encourage you to use our complaints tool to let us know about your experiences.

We have categorised the common complaints to make it easier for you and we have provided some guidance on what you may want to try before submitting a complaint, if our suggestions do not provide you with a resolution then by submitting a complaint, our team will attempt to take up your case with the relevant Broker and if needed, submit a formal report to the regulators.

We use the information you give us to decide if we want to continue to promote a broker on our site.

Your scam broker complaint not only helps you, it helps others and it helps us determine if we continue to support the broker.