Coinbase Says It's Not Exposed to Troubled Crypto Firms; Stock Jumps
July 20 2022 - 12:40PM
Dow Jones News
By Will Feuer
Shares of Coinbase Global Inc. surged almost 16% in midday
trading Wednesday after the company said it "had no financing
exposure" to bankrupt crypto firms Celsius Network LLC and Voyager
Digital Ltd, as well as collapsed hedge fund Three Arrows Capital
Ltd.
"Solvency concerns surrounding entities like Celsius, Three
Arrows Capital (3AC), Voyager, and other similar counterparties
were a reflection of insufficient risk controls, and reports of
additional struggling firms are fast becoming stories of
bankruptcy, restructuring, and failure," Coinbase executives said
in a blog post.
"We believe these market participants were caught up in the
frenzy of a crypto bull market and forgot the basics of risk
management," they said. "We have not engaged in these types of
risky lending practices and instead have focused on building our
financing business with prudence and deliberate focus on the
client."
Shares of Coinbase jumped almost 16% to $76.21 in midday
trading. The stock is still down almost 70% so far this year amid a
broader rout in the crypto market.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires
July 20, 2022 12:25 ET (16:25 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
Coinbase Global (NASDAQ:COIN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Coinbase Global (NASDAQ:COIN)
Historical Stock Chart
From Jul 2023 to Jul 2024