Cryptocurrency exchange Coinbase Global Inc. COIN said it plans to close its San Francisco office next year.
What Happened: Coinbase, which made its debut on the Nasdaq stock exchange last month, announced on Twitter that the closure of its former headquarters in San Francisco is based on its commitment to being “remote first.”
Coinbase noted that the office closure will mean career outcomes are based on capability and output rather than location. It will offer its employees the choice of a network of smaller offices to work from.
"We've committed to having no HQ, and it’s important to show our decentralized workforce that no one location is important than the another," the company said.
Binance, the world’s biggest cryptocurrency exchange, too does not have a headquarters.
See also: How to Buy Coinbase IPO (COIN) Stock
Why It Matters: Coinbase is slated to report its first-quarter results next Thursday. The company’s shares touched an all-time low of $269.02 on Wednesday.
It was reported in April that Coinbase has little to no chance of meeting future profit expectations as stiff competition in the future could cause the company’s transaction margins to drop precipitously, based on a report published by market research firm New Constructs.
Price Action: Coinbase Global shares closed 2.7% lower in Wednesday’s regular trading session at $273.00 and further declined 0.2% in the after-hours session to $272.44.
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