Coinbase shares dropped 27%, $ 1.2 billion convertible debt deal announced, letter to shareholders' competition rises

Coinbase shares lost value last month after opening at $ 342 per share. The company's shares have dropped to $ 248 per share, down more than 27% since being listed on Nasdaq in mid-April. On Monday, the company also announced that it plans to sell $ 1.25 billion of convertible debt. Coinbase shares fell below the benchmark rate of Coinbase Global, Inc. (Nasdaq: COIN) announced Monday that it plans to sell $ 1.25 billion of convertible debt, depending on market conditions. The company's first letter to shareholders, published four days ago, explains that the company noticed strong competition in the digital currency industry. "Despite our excellent first quarter results," he said in a letter to Coinbase shareholders. The rapid expansion of the crypto economy poses challenges for Coinbase as well. Competition is increasing as new entrants enter the crypto economy every month. The announcement came with the company's stock falling and closing below the benchmark price of $ 250 to $ 248 per share. While the value of the company's shares has declined in the past 30 days, the drop in COIN coincided with the market massacre affecting the crypto economy. Likewise, other tech stocks exposed to cryptocurrencies such as Bitcoin and the blockchain technology industry have seen similar declines overall. value. Stocks such as Canaan (CAN), Marathon Digital Holdings (MARA), Microstrategy (MSTR) and Riot Blockchain (RIOT) suffered. The Grayscale Bitcoin Trust (GBTC) has plummeted along with various other digital asset trusts. Coinbase's announcement follows the latest earnings report released on Thursday. The company said it had earned $ 3.05 per share and earned $ 1.80 billion in revenue in one year. Issuance of the Securities and Exchange Commission (SEC). The company surged from $ 585 million in the fourth quarter of 2020 and expects its monthly usage of 5.5 million transactions to increase 63% this year. Coinbase f after starting in San Francisco

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