Bitcoin crash is crushing Coinbase. Stock plunges again
Coinbase stock is now down more than 75% this year and is trading nearly 85% below its all-time high price from November. Shares have lost more than half their value in just the past week alone.
As a result of the volatility, Coinbase reported steep drops in the number of users, trading volume and assets from the fourth quarter.
The company said that “in the event of a bankruptcy, the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings and such customers could be treated as our general unsecured creditors.”
That would imply that customers would not be able to access funds if Coinbase declared bankruptcy.
Armstrong wrote that the company was required to include the bankruptcy warning language because of “a newly required disclosure for public companies that hold crypto assets for third parties” as a result of SEC rules.
Coinbase said in its earnings report that the ad “resulted in significant improvements in our brand awareness, favorability and consideration.”
None of this has been enough to stop the massive slide in Coinbase’s stock, however.
Read More: Bitcoin crash is crushing Coinbase. Stock plunges again