Breakingviews - Coinbase is conjoined to crypto

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Breakingviews - Coinbase is conjoined to crypto
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Coinbase Global went for a ride when digital collectibles like Bitcoin soared. The excitement meant more customers, rising trading volumes and rocketing fees. Last year’s revenue was 14 times higher than 2019. First quarter earnings on Tuesday show everything has now switched into reverse, and hard.

Users declined by about a fifth from the previous quarter and revenue fell more than half. The formerly profitable Coinbase racked up a $430 million loss as the company invests in expansion. A new disclosure, that crypto assets held in custody on behalf of customers could be treated as general unsecured creditors in the event of bankruptcy, won’t help.

over the space of a few days. Coinbase, whose shares fell about 20% on the news and are down about 80% since their debut about a year ago, is crypto’s conjoined twin.

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