0x0 22 Coinbase rallies on prediction it will survive crypto winter

Coinbase rallies on prediction it will survive crypto winter

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-D.A. Davidson analyst Christopher Brendler released a cautiously optimistic note describing the nations largest crypto trading firm as ready for winter.
-As crypto prices have plummeted, so too has Coinbases trading volume. In the second quarter of 2022, that volume fell 31% from the first quarter, taking a big bite out of the companys primary revenue stream.
-Brendler dropped his price target for Coinbase stock over the next year from $135 to $90, but he ultimately sees the market downturn as opening up acquisition opportunities for well-funded players in the crypto space such as Coinbase.
-Coinbase currently has $6.1 billion in cash on hand, but to survive falling revenue has needed to cut operating costs. In June, Coinbase joined a myriad of other fintechs in a round of lay-offs, shrinking its workforce by 18%. Additionally, the company has $3.4 billion in long term debt and has yet to show consistent profitability.
-One concern for the company is that 90% of revenue comes from its flagship trading business, which is tied to the volatile crypto market. Bitcoin BTC , the most valuable cryptocurrency, is down 59% year to date. Coinbases efforts to diversify revenue streams have included an NFT marketplace, a staking business, and a lending product which was discontinued after a battle with the SEC.
-Despite Coinbases brand and popularity among retail traders, COIN is down 79% year-to-date.

Coinbase rallies on prediction it will survive crypto winter
Coinbase rallies on prediction it will survive crypto winter 3

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