trade now
CryptocurrencyExchanges & BrokersNewsPrice AnalysisTrading

Goldman Sachs Reduces Coinbase to Trade Rating

Financial analysts with Goldman Sachs have cut down the grade of Coinbase Inc. This was contained in a client’s note from the analysts on Monday. Coinbase shares have slid down by 83.68% from their all-time high in November 2021.

William Nance of Goldman Sachs said his group of strategists think Coinbase has to reduce its cost base.

Coinbase Share Plummet Heavily

The share value of Coinbase has received a heavy hit as the bear market continues. It is the same for a lot of crypto company shares. They have all lost significant value in the course of the past few months.

Coinbase went public first on the 14th of April, 2021. Its shares were then listed on Nasdaq through a direct listing with its ticker as COIN. The Coinbase IPO went for $250 at that time and investors saw it as a watershed.

After its listing 14 months ago, COIN hit an all-time high of $342.98. This was on the 12th of November 2021. Just two days before then, Bitcoin had hit its highest point of $69,000 per coin.

📰  Bitsterzio Review - Is Bitsterzio Scam or Legit?

But while Bitcoin shed 70% over eight months, COIN lost 83.68% in the same period. Goldman Sachs analysts stepped in via a report published on Monday. They downgraded the Coinbase stocks to a sell rating.

In a note they wrote to investors, the analysts made statements about the downgrade. Its lead researcher said Goldman Sachs believes Coinbase needs substantial reductions. The reduction will be in its overall cost base so it can stem off cash burn.

William Nance also recently gave ratings on some other companies such as Western Union. Others he rated include Fidelity National Information Services, Fiserv, and Shift4 Payments.

Coinbase Faces a Stiff Pressure

In the report, there are revelations that it’s not only equity investors in pain. Matt Turner and Subrat Patnaik said Coinbase’s bonds are also under pressure. Its senior unsecured bonds are set to mature in 2031.

Coinbase bonds are among the biggest losers in the high-yielding US market. Nance added that the exchange was encountering some difficulty going forward.

📰  Decentralized Exchange Pangolin Will Debut On Flare Network

He said Coinbase is going through a difficult patch. It is having to choose between shareholder dilution and a significant cut in staff compensation. The latter would greatly affect talent retention. produces top quality content exposure for cryptocurrency and blockchain companies and startups. We have provided brand exposure for thousands of companies to date and you can be one of them too! All of our clients appreciate our value / pricing ratio. Contact us if you have any questions: Cryptocurrencies and Digital tokens are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by our authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Read full terms and conditions / disclaimer.

📰  Move-to-Earn VS Play-to-Earn In Crypto - Explained

📰  Bitsterzio Review - Is Bitsterzio Scam or Legit?

Shelly Melancon (Switzerland)

Shelly is a cryptocurrency enthusiast from Switzerland, she bought her first crypto in 2015 when it was way less popular then it is today and since 2017 she has been writing about cryptocurrency for online news portals. Shelly is the newest addition to the Tokenhell team, she writes mostly news and reviews related articles , stay tuned to her posts to stay up to date with the crypto world.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button