It's A New Low: Why Coinbase Stock Plunged 87% This Year

Zinger Key Points
  • Coinbase CEO Brian Armstrong explained in a corporate post that the company had to be prepared for the worst.
  • The company continues to struggle since the onset of the crypto bear market.

Coinbase COIN stock dropped a whopping 87.04% to $35.00 levels from $268.15 on Dec. 21, 2021 — its lowest price level since the company went public last year.

While tech stocks have suffered losses in 2022, Coinbase remains one of the few publicly-traded companies focused on cryptocurrencies. The others include Block Inc. SQ (previously Square), Core Scientific CORZ and Riot Blockchain RIOT.

Even though COIN is declining according to Benzinga Pro, Ark Invest chief investment officer and portfolio manager Cathie Wood purchased an additional 297,000 shares of Coinbase Stock last week for a total cost of $11.9 million.

See Also: Coinbase CEO Says Sam Bankman-Fried's Hedge Fund Used $8B Of Stolen Customer Money

Currently, Wood's investment fund owns more than 6 million shares of Coinbase valued at $246.7 million.

Coinbase started removing job offers for new candidates in June and put a hiring freeze in place.

Then, in July, as the crypto bear market continued to dominate the sector, Coinbase let go of 1,100 people, or 18% of its workforce.

At the time, Coinbase CEO Brian Armstrong explained in a corporate post that the company had to be prepared for the worst due to the quickly shifting economic landscape and the prospect of a recession.

See Also: Trump's NFTs Struggle, As Floor Price Drops 74% In 3 Days: What's Next For His Web3 Adventure?

Although its price may be down, Coinbase is still positive about the future and shared images of technologies like the vehicle, elevators, and telephones on Twitter last week.

"For every technology game-changer, there are millions of doubters. Tune out the noise and keep building," the company tweeted.

Core Scientific, a publicly traded Bitcoin mining firm, has likewise suffered a decline in its stock price in 2022.

CORZ, the company's stock, opened the year at $10.06.

The shares fell 97% by December 1, 2022, when it was trading at $0.22.

The company filed for Chapter 11 bankruptcy protection early Wednesday morning.

Next: Crypto Exchange Swyftx Withdraws From $1B Merger Deal Amid Australian Regulatory Scrutiny

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CryptocurrencyNewsPenny StocksSmall CapTop StoriesMarketsBrian Armstrong Coinbasecrypto exchangeICYMI
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...