Coinbase Bonds Are Now Almost As Cheap As Russia’s

  • Coinbase’s junk bonds are shrinking in value as investors ditch its debt and its shares.
  • The crypto exchange’s 10-year bonds are as cheap as Russia’s — yielding around 9.9%. 
  • Coinbase has faced intense pressure after missing analyst estimates with its Q1 results.

Cryptocurrency exchange platform Coinbase has been hit from all sides following its first-quarter earnings results.

Chief executive Brian Armstrong assured investors this week that was no risk of bankruptcy after the company warned users they might lose access to their crypto assets if the company ever went bust, yet confidence in the business has slipped, as evidenced by the drop in value of its stock and its junk bonds.

Cryptocurrency markets are highly unpredictable, and Coinbase’s fortunes are tied closely to them. 

“Coinbase has said that it is willing to lose up to $500 million in EBITDA per year, making the timing for a return to positive earnings unclear,” research firm Morningstar said in a recent note. 

“We generally caution against reading too deeply into Coinbase’s quarterly results, since market



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