Coinbase Global Inc COIN operates the largest spot exchange for cryptocurrencies such as Bitcoin BTC/USD and Ethereum ETH/USD in the United States but it has recently faced headwinds amid a market slide.
Moody's Investors Service on Thursday downgraded Coinbase’s Corporate Family Rating to Ba3 from Ba2 and its guaranteed senior unsecured notes to Ba2 from Ba1.
Moody’s said Coinbase’s ratings were placed “under review” for further downgrade. The agency noted “the rapid decline in crypto asset prices,” which accelerated during the second quarter of 2022 and will likely “result in lower transaction revenue for the remainder of the year, absent a significant sustained rebound in crypto asset prices and trading volumes.”
Also on Thursday, Coinbase said it was planning to phase out its Coinbase Pro platform, targeted at more advanced traders, by the end of the year.
The company also said it would reduce staff by 18% amid the downturn in cryptocurrencies.
The Investment
Despite the headwinds, if an investor decided to put $100 into Coinbase stock on Thursday when the company’s shares closed 13.4% higher at $58.88, here’s how much they would have if the shares touched their all-time high of $357.39 hit on Nov. 9, 2021.
| Investment | Date Of Purchase/Listing | Purchase Amount | Purchase Price | Units/Shares Obtained | Worth If Shares Return To ATH | Percentage Change |
|---|---|---|---|---|---|---|
| Coinbase Stock | June 23, 2022 | $100 | $58.88 | 11.70 | $506.98 | 606.98% |
The investor would have gained nearly 607% on their Coinbase play and the $100 would turn into $506.98, should the stock regain its all-time high level.
Read Next: Coinbase To Lay Off 8% Of India Team — But Makes This Key Top-Level Hire
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
