Coinbase Global Inc., one of the largest US crypto platforms, has taken a big hit from the ongoing crypto dump. The Shares of the San Francisco-based Crypto Trading Platform fell as much as 15.7% while bitcoin fell to 8.7%.
The fall in the platform’s shares is reportedly the “biggest single-session drop” — a drop that has never happened since its IPO last April.
As a crypto exchange, the recent dip in most cryptos, which took the price of bitcoin from $43k to around $38k, contributed greatly to the decline in Coinbase shares.
According to Matt Maley, chief market strategist for Miller Tobacco + Co.,
“The correlation between COIN and Bitcoin remains very strong.”
After Coinbase applied to go public on NASDAQ through a direct listing with the U.S. Securities and Exchange Commission (SEC) instead of the traditional Initial Public Offering, the company has not admitted to making further strides in the crypto space.
From introducing a proposed regulatory framework for cryptocurrencies in the US to launch Coinbase NFT, the company has made an effort despite several dips 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 through a mobile app, also saw its shares fall.
When the crypto dip happened, the company’s shares fell nearly 7%, also marking the lowest since July 2021, when it made its public debut.
Another company that has suffered losses as a result of the crypto crash is leading publicly traded business intelligence and software company MicroStrategy.
While not a cryptocurrency-based company, MicroStrategy has the largest stock of cryptocurrencies with total bitcoin holdings of 124,391 units. The company lost about $4 billion in paper profits from the November crypto crash when bitcoin was still $69,000.
With the recent dip, the total value of MicroStrategy’s bitcoin stash, which was worth $5 billion since its last purchase, fell by a billion dollars.