Bitcoin crash is crushing Coinbase. Stock plunges again
The cryptocurrency brokerage reported a first-quarter loss late Tuesday and revenue that fell 27% from a year ago, missing Wall Street’s forecasts. Coinbase shares plummeted more than 25% Wednesday and hit their lowest level ever.
Coinbase stock is now down more than 75% this year and is trading nearly 85% below its all-time high price from November. Shares have lost more than half their value in just the past week alone.
The plunge in Coinbase’s stock coincides with the massive drop in the value of bitcoin, ethereum and other cryptocurrencies 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.
As a result of the volatility, Coinbase reported steep drops in the number of users, trading volume and assets from the fourth quarter.
“The first quarter of 2022 continued a trend of both lower crypto asset prices and volatility that began in…
