Coinbase Shares Record Biggest Drop (Over 15%) Amid Ongoing Crypto Dump

Coinbase Global Inc., one of the largest U.S. crypto platforms, has experienced a big hit due to the ongoing crypto dump. The shares of the San Francisco-based crypto trading platform fell as much as 15.7% while bitcoin fell as low as 8.7%.

The drop in the shares of the platform is reported to be its “biggest-ever single-session decline”, one that has never happened ever since its Initial Public Offering last year in April.

As a crypto exchange, the recent dip of most cryptos that brought the price of bitcoin down from $43k to about $38k greatly contributed to the drop in Coinbase shares.

According to Matt Maley, chief market strategist for Miller Tabak + Co.,

“The correlation between COIN and Bitcoin remains very strong.”

After Coinbase filed to go public on NASDAQ through a direct listing with the US Securities and Exchange Commission (SEC) instead of the traditional Initial Public Offering, the company has not relented in taking more steps into the crypto space.

From introducing a proposed regulatory framework for cryptocurrencies in the U.S. to launching Coinbase NFT, the company has been putting in effort despite several dips that the crypto space has experienced.

Coinbase is not the only crypto company feeling the scorch of the crypto crash. Robinhood Markets Inc., an American financial services company that sells stocks, exchange-traded funds, and cryptocurrencies via a mobile app, also experienced a drop in its shares.

When the crypto dip occurred, the company’s shares dropped nearly 7%, also recording its lowest since July 2021 when it made its public debut.

Another company suffering losses due to the crypto crash is leading publicly traded business intelligence and software company MicroStrategy.

Although not a crypto-based company, MicroStrategy has the highest stash of crypto with a total bitcoin holding of 124,391 units. The company lost about $4 billion in paper profit due to the crypto crash from November when bitcoin was still $69,000.

With the recent dip, the total worth of MicroStrategy’s bitcoin stash which was worth $5 billion after its last purchase decreased by a billion dollars.