Coinbase in a bear market: losses, layoffs, stock price plunges

With 6 month 27 Japanese and American stocks closed ,Coinbase The stock price is fixed at 55.96 dollar , Intraday decline 10.76%, In the last year 4 month , It acts as a crypto asset exchange 「 The first one 」 Landing on NASDAQ , The opening price at that time was 381 dollar . Just over a year ,Coinbase The share price has fallen 85.3%.

The transformation of crypto asset market from bull to bear undoubtedly affected Coinbase Performance of . According to its published financial report , The company's revenue in the first quarter of this year was 11.7 Billion dollars , fell 27%, A loss was recorded 4.2 Billion dollars , by comparison , Its net profit for the same period last year was 7.71 Billion dollars .

From profit to loss , In addition to the decline in transaction fee income caused by the gloomy market , This is also related to Coinbase The increase in expenditure is related to . The first quarter of this year , The company's operating expenses amount to 17.2 Billion dollars , Year-on-year growth 9%. period ,Coinbase Maintain high-speed personnel expansion , A total of new ideas 1218 Employees , Bring its total number of employees to close to 5000 people .

Because the crypto asset market is 6 The month fell further ,Coinbase Finally realized that 「 Authors efficiency 」 Importance , Announced job cuts 18%, To reduce costs .

In addition to the problem of excessive operating expenses ,Coinbase It's also facing FTX、Binance And so on , This year, 5 month , Its spot trading volume is FTX Surpass for the first time . Besides , There is no derivatives trading business ,Coinbase We will also face cash flow pressure during the bear market .

recently , Goldman Sachs has Coinbase Rating on the stock from 「 Neutral 」 Down to 「 sell 」, It is estimated that its revenue in the second half of the year will decrease by about 73%.

Since listing Coinbase Share price fall 85.3%

As the crypto asset market continues to decline , industry 「 The first one 」Coinbase It is no longer the style when it was listed on NASDAQ last year , To be looked down upon by the outside world .

6 month 27 Japan , Investment bank Goldman Sachs will Coinbase (COIN) From 「 Neutral 」 Down to 「 sell 」, And the target price of its stock will be raised from 70 US dollar down to 45 dollar . Goldman said , The downgrade is due to the continued decline in the price of encrypted assets and the consequent decline in the level of industry activity .

About two weeks ago , JPMorgan Chase will also Coinbase Our stock rating ranges from 「 Overweight 」 Down to 「 Neutral 」, And the target price from 171 US dollar down to 68 dollar . JPMorgan Chase pointed out in its report that , Since most of the company's revenue comes from encrypted asset transactions 、 Pledge and escrow , The recent market downturn may have a negative impact on Coinbase Revenue generation 「 Significant negative impact 」.

Coinbase Last year, 4 month 14 We landed on NASDAQ , The opening price is per share 381 dollar , On the same day, its stock once soared to 429.5 dollar . After the listing , The company that made a big profit last year , There has been a continuous decline in performance 、 The phenomenon that the stock trend is losing ground .

With 6 month 27 Japanese and American stocks closed ,Coinbase The stock price is fixed at 55.96 dollar , Intraday decline 10.76%. Its current share price is lower than the opening price at the beginning of listing 85.3%, Down from the highest price in history 86.97%. In more than a year of listing ,Coinbase Fall from peak to trough .

Coinbase Share price goes down all the way

In the world of encrypted assets , The exchange has always been a high profit place , Even if the bear market comes , As long as there is trading activity in the market , The trading platform can also maintain relatively stable cash flow . But why Coinbase The share price of has been falling all the way , Almost no rebound ？ The company that once set a benchmark in the industry , What happened ？

From this year 5 month Coinbase released 2022 From the financial report of the first quarter of the year , Its revenue in the first quarter was 11.7 Billion dollars , fell 27%, Not meeting Wall Street expectations 14.8 Billion dollars . The first quarter of this year ,Coinbase A loss was recorded 4.2 Billion dollars , And the same period last year Coinbase Net profit realized 7.71 Billion dollars .

From profit to loss comes from Coinbase All revenue generating businesses generally declined , And operating expenses increased significantly .

According to its financial data ,Coinbase Nearly... In the first quarter 12 Net income of US $100 million , among 10 US $billion is the trading revenue ,1.52 Billion dollars for subscription and service revenue , This is down from the fourth quarter of last year 56%. among ,Coinbase The retail transaction revenue of encrypted assets in the first quarter was 9.66 Billion dollars , Year-on-year decline in 56%; The institutional transaction income is 4700 Thousands of dollars , Compared with the fourth quarter of last year 48%.

From the financial data , Transaction fee income accounts for Coinbase Total revenue 80% above , The main reason behind the decline in revenue is the sharp decline in trading volume . The first quarter of this year ,Coinbase The trading volume is 3090 Billion dollars , It is lower than that in the fourth quarter of last year 5470 Billion dollars , It's down on a month on month basis 43%. Monthly transaction users (MTU) by 920 ten thousand , Compared to the fourth quarter of last year 1140 Million also decreased .

In terms of expenditure ,Coinbase The total operating expenses in the first quarter were 17.2 Billion dollars , Year-on-year growth 9%, This is the first time that the company's total expenditure has exceeded its revenue since it published its financial statements . among ,Coinbase The technology and development cost in the first quarter is 5.71 Billion dollars , An increase over the fourth quarter of last year 24%. The selling and marketing expenses are 2 Billion dollars , Down from the fourth quarter 18%. General and administrative expenses are 4.14 Billion dollars , An increase over the fourth quarter 39%. Other operating expenses are 2.59 Billion dollars , Year-on-year growth 252%.

Although affected by the downward trend of the encryption asset market ,Coinbase The revenue in the first quarter decreased , But there are still near 12 Hundreds of millions of dollars in revenue . Judging from its financial results ,Coinbase The reason for the loss may also be attributed to excessive expenditure , Especially after the encryption market enters the downward cycle ,Coinbase It also maintains a high-speed personnel expansion .

Results show that , The company increased in the first quarter 1218 Employees , Bring its total number of employees to close to 5000 people . This year, 5 month ,Coinbase Chief operating officer of Emilie Choi He also said in an internal letter that , The company plans to triple the number of employees .

It is difficult to cope with the cold winter of the bear market

However , When entering 6 After month , The crypto asset market has seen a greater decline . By 6 month 28 Japan ,BTC It has been changed from 32000 The dollar fell to 21000 dollar , The decline in the month exceeded 34%.

When the market environment is sluggish ,Coinbase Our revenue is further affected .CryptoCompare data display , This year, 5 month ,Coinbase The volume of transactions is less than 800 Billion dollars , And it used to 12 The average monthly trading volume is 1100 Around $100 million . before ,Coinbase In a letter to shareholders, it said , It is expected that the number of platform users and transaction volume will decline again in the second fiscal quarter .

With the decline of the market and the expected decline of revenue ,Coinbase Finally realized the seriousness of the problem ,5 late ,Coinbase Stopped recruiting , Even refused some new employees who should have joined . This month, , The exchange officially launched the layoff plan .

6 month 14 Japan ,Coinbase In an e-mail, he said that he would lay off a large number of employees 18%. According to the company's agreement 5000 Full time employees , There will be 900 Employees lost their jobs . The founder of the company Brian Armstrong Express , As the economy may enter recession , The company grew too fast during the bull market , In the low-density market 「 Authors efficiency 」 It's very important , therefore Coinbase Need to scale down .

Coinbase Announce that there will be layoffs 18%

Such layoffs are still considered low by Goldman Sachs , The agency believes that ,Coinbase Further job cuts may be needed to maintain a relatively healthy financial position . Goldman Sachs points out that , As retail trading activity slows ,Coinbase Will need to slash its cost base , To prevent the resulting cash consumption ,「 however , This may have a negative impact on talent retention 」.

In case of lower income expectation , Downsizing and retrenchment are Coinbase The means we have to do . But actually , Throttling is just a way to ease cash flow , Open source revenue is the key to breaking the bottleneck , And at this point , It has been in a disadvantageous position compared with its competitors .

Coinbase It is a compliance trading platform in the United States , But in the crypto asset market ,FTX、Binance It also occupies the main market share . according to The Block The data of , This year, 5 month , The spot trading volume of the crypto asset exchange is 8304 Billion dollars , among ,Binance Proportion 64.1%, and FTX Surpass for the first time Coinbase In second place , Proportion 10.8%. by comparison ,Coinbase The market share of has been compressed to 9.6%. JPMorgan Chase analysts said , Due in 6 month ,FTX The spot trading volume of will continue to be higher than Coinbase.

Although in the past year ,Coinbase Many new assets have been launched on the site , But compared with the total assets Binance And FTX There are still some deficiencies , This has led to the loss of some users . The more serious problem is , because Coinbase Operate strictly under the regulatory framework , So far, it has not opened derivatives trading business , This makes its product richness lag behind its competitors , And the revenue capacity is insufficient .

Compared with the spot trading business , The revenue generating capacity of derivatives businesses such as contract trading is stronger . With Binance For example , The trading volume of its derivatives far exceeds its spot trading volume ,6 month 26 The data of the day shows ,Biannce BTC /USDT The contract trading volume of the trading pair is about... Of the spot trading volume 8 times .

Analysts believe that , In a bear market cycle , The trading volume of crypto assets on the spot is often relatively sluggish , Derivatives trading can be short sold , The impact is relatively limited .「 If there is no derivatives business , Just rely on cash to generate income , The cash flow pressure of the trading platform in the bear market will be very great .」

As the Federal Reserve continues to tighten monetary easing , There are still further downside risks in the crypto asset market . In the long bear market ,Coinbase Into the cold winter . Goldman Sachs is still not optimistic about the performance of the exchange in the second half of the year ,「 It is expected that its revenue in the second half of the year will decrease by about 73%, The annual income decreased by about 61%.」

（ Statement ： Please strictly abide by the local laws and regulations , This article does not represent any investment advice ）

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