Coinbase (COIN) stock fell to a low of $32.40 per share, down 6% in the past five days. The stock has recovered from this and is trading at $32.65 pre-market. This excludes what was a brutal 2022 for Coinbase investors, with the company’s shares falling almost 87% in the year and more than 23.19% in the last month.
The exchange, which is currently the third largest crypto exchange by trading volume, has been badly affected by a combination of legal fears and the FTX campaign reducing investor confidence in the sector. The company’s income fell. The company reported revenue of $576 million for the third quarter of 2022, down 28% from $803 million in the first quarter.
Also, revenue from transactions — where Coin base makes most of its money — fell 44% quarter-on-quarter as fewer employees worked on the exchange. The company took drastic measures to improve its finances, laying off 1,100 workers, or about 18% of its workforce in June, citing “economic conditions” and saying it was “in -quick growth” in the statement. Coinbase supporters are buying to put it Still, some prominent investors have recently put their faith in the company.
The investment company Ark Invest, led by Cathie Wood, continued its plan to buy Coinbase shares, adding a total of 296,578 Coinbase shares to its exchange-traded funds (ETFs) last Wednesday. While Coinbase’s performance hasn’t been stellar, tech stocks in general have fallen sharply this year across the board. The Nasdaq Composite, where Coinbase is listed, is down 34.40% so far in 2022. In fact, the exchange has done better than many others in the crypto space, especially mining companies. Bitcoin mining companies Riot Blockchain and Marathon Digital Holdings have fallen 84.96% and 90.15% respectively since the beginning of the year.