Stock Market News

Coinbase bonds dragged lower as crypto market slumps

2022.11.22 10:09



© Reuters. FILE PHOTO: A representation of the cryptocurrency is seen in front of Coinbase logo in this illustration taken, March 4, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) -Coinbase Global’s bonds have fallen heavily, and its shares have hit record lows, as investors ditched crypto following rival FTX’s collapse earlier this month.

The crypto exchange’s note due 2031 was trading at 51 cents on the dollar on Tuesday, down from its August peak of 68.50, with yields – that trade inversely to price – jumping to 13.1%, according to Refinitiv data.

At the start of 2022, those notes were trading closer to 93 cents on the dollar.

By comparison, the yield on the 10-year U.S. Treasury bond was trading around 3.806%.

The spike in Coinbase (NASDAQ:) yield and its the increasing premium over the corresponding indicated investors are growing increasingly concerned about the crypto exchange’s creditworthiness.

The yield on Coinbase’s notes due 2026 was at 15.52%, after touching a record high at 15.78% on Friday.

Moody’s (NYSE:) Investors Service said on Monday it had placed Coinbase’s corporate family rating, currently at Ba3, on review for downgrade.

A rating of Baa3 and lower is considered “junk” territory and highly speculative. Coinbase is rated one notch below.

Moody’s said the collapse of FTX has heightened the level of uncertainty in the crypto industry, raising challenges for all those operating within the sector.

The crypto exchange is likely to see “an increasing possibility of sustained reductions in trading volumes and client engagement, that are important factors for Coinbase’s revenue” said Moody’s Vice President and Senior Analyst Fadi Abdel Massih.

Shares of Coinbase have lost nearly 38% in value this month and closed at a record low at $41.23 on Monday. Their value is about a tenth of the level when they listed publicly to much funfare in New York in April 2021.



Source link

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 99,147.56 1.39%
ethereum
Ethereum (ETH) $ 3,480.32 0.78%
tether
Tether (USDT) $ 0.999138 0.02%
xrp
XRP (XRP) $ 2.31 0.72%
bnb
BNB (BNB) $ 703.89 1.90%
solana
Solana (SOL) $ 198.96 2.50%
dogecoin
Dogecoin (DOGE) $ 0.332915 0.83%
usd-coin
USDC (USDC) $ 0.999797 0.01%
staked-ether
Lido Staked Ether (STETH) $ 3,475.25 0.78%
cardano
Cardano (ADA) $ 0.917913 0.19%
tron
TRON (TRX) $ 0.257966 1.30%
avalanche-2
Avalanche (AVAX) $ 40.49 0.28%
chainlink
Chainlink (LINK) $ 24.58 1.95%
the-open-network
Toncoin (TON) $ 5.96 4.21%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,123.60 0.77%
shiba-inu
Shiba Inu (SHIB) $ 0.000023 0.48%
sui
Sui (SUI) $ 4.57 0.19%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 98,918.50 1.21%
hedera-hashgraph
Hedera (HBAR) $ 0.314745 3.04%
stellar
Stellar (XLM) $ 0.384618 2.89%
polkadot
Polkadot (DOT) $ 7.53 1.32%
weth
WETH (WETH) $ 3,479.03 0.74%
hyperliquid
Hyperliquid (HYPE) $ 28.58 2.41%
bitcoin-cash
Bitcoin Cash (BCH) $ 461.73 1.15%
leo-token
LEO Token (LEO) $ 9.49 0.15%
uniswap
Uniswap (UNI) $ 13.83 4.06%
litecoin
Litecoin (LTC) $ 109.08 1.22%
bitget-token
Bitget Token (BGB) $ 5.74 16.32%
pepe
Pepe (PEPE) $ 0.000019 1.74%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,671.89 0.72%
near
NEAR Protocol (NEAR) $ 5.42 1.18%
ethena-usde
Ethena USDe (USDE) $ 0.999359 0.00%
aave
Aave (AAVE) $ 369.47 1.37%
usds
USDS (USDS) $ 1.00 0.01%
internet-computer
Internet Computer (ICP) $ 11.22 1.39%
aptos
Aptos (APT) $ 9.62 0.38%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.516109 0.29%
crypto-com-chain
Cronos (CRO) $ 0.158173 2.83%
vechain
VeChain (VET) $ 0.051797 0.75%
mantle
Mantle (MNT) $ 1.24 1.45%
ethereum-classic
Ethereum Classic (ETC) $ 27.28 1.61%
render-token
Render (RENDER) $ 7.56 1.88%
bittensor
Bittensor (TAO) $ 502.14 2.60%
monero
Monero (XMR) $ 197.67 4.98%
mantra-dao
MANTRA (OM) $ 3.81 2.83%
whitebit
WhiteBIT Coin (WBT) $ 24.96 0.41%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.35 1.00%
dai
Dai (DAI) $ 0.99984 0.01%
arbitrum
Arbitrum (ARB) $ 0.800266 0.56%
filecoin
Filecoin (FIL) $ 5.31 1.43%