Share prices for America’s largest and most profitable crypto exchange, Coinbase, have slumped. The rout has been so bad that COIN hit an all-time low.
Coinbase stock prices have tanked to almost $40 after the bell on Nov. 21. Other crypto stocks also tanked as Bitcoin prices slumped to a new 2022 low below $16,000.
According to MarketWatch, COIN prices had recovered slightly to trade at $41.36 in after-hours trading.
Furthermore, Coinbase stock fell to $40.64 on Monday, marking a decline of 88.6% from its all-time high to a new all-time low daily close. In November 2021, Coinbase shares topped out at around $357 during the crypto market peak, though they briefly went even higher on the day of the IPO (initial public offering) in April 2021.
Coinbase Value Slumps
MarketWatch reported that the decline of Coinbase stock had dropped the company’s market value below $10 billion for the first time since it went public. The crypto company has been worth as much as $76.9 billion since its IPO, it added.
According to Bloomberg, Coinbase has 14 buy, 12 hold, and six sell ratings. On Nov. 18, the Bank of America downgraded Coinbase stock to neutral from buy.
CNN reports that the largest COIN holders are The Vanguard Group, Ark Investment Management, and Blackrock Fund Advisors.
Coinbase posted a 50% revenue loss in the third quarter compared to the same period in 2021. The company derives as much as 85% of its revenue from above-industry standard transaction fees.
Coinbase was not the only crypto company to see a stock slump as mining firms were hit harder. Marathon Digital Holdings dropped 17%, Riot Blockchain fell 10.6%, Canaan lost 8.7%, and Iris Energy fell 18%. Furthermore, Bitcoin investor MicroStrategy declined 7.6% on the day.
Institutions Shorting Bitcoin
The CoinShares weekly asset flows report also paints a gloomy picture. On Nov. 21, it was reported that short investment product inflows represented 75% of the total inflows. This suggests “on aggregate sentiment was deeply negative for the asset class,” it added.
Bitcoin fund inflows were offset by those piling into products that short the asset. The same is going on with Ethereum products which saw record inflows into funds shorting ETH.
Furthermore, total assets under management (AUM) is now at its lowest level in two years at $22 billion, noted CoinShares.
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