Coinbase's Strategy Has Backfired, Leaving The Stock With Further Downside

Jun. 24, 2022 5:43 PM ETCoinbase Global, Inc. (COIN)IBKR21 Comments
Graham Neary profile picture
Graham Neary


  • Coinbase announced a reduction of its workforce by 1,100 employees or 18% of headcount. But the company is still forecast to operate at a loss for the foreseeable future.
  • The CEO's stated policy to operate at breakeven, assuming that crypto prices will increase over time, now looks far too ambitious.
  • Given the very high levels of risk involved and the ongoing losses, the stock should be trading at a discount to book value.

Coinbase Releases Third-Quarter Financial Results

Leon Neal/Getty Images News

Coinbase (NASDAQ:COIN) enjoyed strong results in 2021, the same year of its IPO, but the stock has turned into a nightmare for investors in the current year.

As the tide went out of the cryptocurrency market, Coinbase's

COIN, IBKR metrics comparison

Author, using public data.

COIN, IBKR metrics comparison

Author, using public data

This article was written by

Graham Neary profile picture

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (21)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.