Besides Coinbase Global Inc, a host of other stocks in the US that are connected to the crypto economy, are largely suffering the same faith as it relates to stock devaluation.
The spate of selloffs in technology stocks in the United States and around the world has pushed investors like Jupiter Asset Management, Azora Capital, and Yarbrough Capital to dump their Coinbase Global Inc (NASDAQ: COIN) shares as recent filings shows. According to a Reuters report, citing the filings, these investors sold off their COIN holdings in the first quarter, before the company’s shares slumped 30% to record lows earlier this month.
Coinbase, the largest cryptocurrency trading platform in the United States has been in a freefall since it was listed back in April last year. While it has had more radiant days when the sentiment in the crypto market was still very bullish, its correlation with the crypto industry has fueled a downtrend, one that has been reflected in the performance of its stock in the past couple of months.
The woes for Coinbase got pronounced when the company missed estimates and reported a 27% plunge in revenue to $1.17 billion year-over-year. The shares tumbled in tandem and notably got many investors to lose faith in its future outlook. At the time of writing, Coinbase shares are up 4.83% in the Pre-Market, parring off some of the 9.09% loss it closed Monday’s session at. In the year-to-date period, the shares are down 74%.
Jupiter Asset Management sold exactly 73,441 shares of the Coinbase company in the quarter that ended March 31, while Azora Capital sold 43,290 shares and Yarbrough Capital sold 16,968, according to securities filings. Additionally, Tiger Global is left with 836,597 shares of the company after it cut its stake by as much as 70%.
While these investors notably cut their shares in Coinbase, the Brian Armstrong-led firm still has a fan in Cathie Wood’s Ark Invest. The Ark Innovation ETF run by the fund acquired a little more than 1.5 million shares of the company as others were selling off.
Similar Bearish Trends Amongst Crypto Stocks
Besides Coinbase Global Inc, a host of other stocks in the US that are connected to the crypto economy, are largely suffering the same faith as it relates to stock devaluation.
Despite the fact that investing app Robinhood Markets Inc (NASDAQ: HOOD) has seen significant growth upticks in recent times based on the 7.6% stake acquired by FTX CEO Sam Bankman-Fried the company’s shares are still down by about 70% from their IPO price.
Robinhood does not sell digital currencies as its primary product, but the crypto sentiment has been rubbing off on the firm in recent times. Additionally, MicroStrategy Incorporated (NASDAQ: MSTR) has also been dropping as the company’s major reserve asset is held in Bitcoin. The drop in BTC’s price has also triggered investors’ bearish sentiment over the company’s stock.
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