Coinbase Shares Sink to All-Time Low

Shares of the U.S.-based cryptocurrency exchange Coinbase (COIN) hit their lowest price since going public in April 2021.

COIN dropped to $40.62 on Monday, down 10% today and 39% in the month of November as investors retreated from digital assets in part thanks to the fallout from the bankruptcy of crypto exchange FTX.

Coinbase stock traded up to $400 on the day the company went public on the Nasdaq last year, the highest price it has been in its history, and even then at least one expert was warning that investors should “buckle up their seatbelts and expect a wild ride.”

The bitcoin (BTC) price rose to a record high near $69,000 in November 2021, but crypto markets have been falling ever since, and Coinbase's shares came along. The stock has lost more than 80% of its value this year, underperforming most cryptocurrencies.

“Coinbase shares can't catch a break,” Oanda’s Edward Moya said. “The major cryptocurrency exchange has yet to convince investors that its share price will stabilize like some of the other top cryptos as investor skepticism about trading on exchanges grows."

Bonds issued by Coinbase also dipped in November as investor’s appetite for crypto tanked after FTX’s bankruptcy triggered an industry-wide contagion. Coinbase’s bonds dropped 15% this month and are trading at 50 cents on the dollar, according to data firm Finra-Morningstar.

“Coinbase has a small exposure to FTX, but most of the recent weakness is stemming from concerns many crypto traders might be opting for cold storage instead of keeping money on exchanges,” Moya said. “Coinbase has a tough road ahead until investors have further clarity on the company's reserves and exposure to other crypto assets.”