Coinbase’s $51 Billion Nosedive Isn’t Only About Crypto Winter
- Largest US cryptocurrency exchange underperforms even Bitcoin
- It could pause expansion of sales, support staff, analyst says
Monitors display Coinbase signs during the company's IPO at the Nasdaq MarketSite on April 14, 2021.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Coinbase Global Inc. has gone from one of the stock market’s most hotly anticipated debuts to one of its most spectacular crashes in a little more than a year, leaving some analysts and investors bewildered by poor execution at the largest US cryptocurrency exchange.
The firm’s market value has shrunk by about $51 billion since the end of its first day of trading last April. Coinbase shares fell to an all-time low earlier in May, and even after recovering somewhat are still down about 80% from their debut. That’s a steeper drop than Bitcoin’s 53% slump in the same period.