Coinbase’s shares delivered disappointing results on Tuesday, while key officials said on an earnings call that the business had no effective plans like purchasing or merging with Robinhood.
Emilie Choi, COO, dismissed the concept of a partnership with the trading app. This matter was hotly debated on Coinbase’s investor discussion board, which is used to guide investor calls.
“We are crypto-based, crypto is in our DNA, and everything we do is in the service of developing the crypto economy and boosting economic freedom. As a result, we have no plans to issue traditional securities unless doing so would significantly accelerate cryptocurrency adoption,” Choi said.
Choi instead emphasized the company’s venture capital arm’s investments, which have given it a share in several of the leading Web3 companies, including Uniswap and Alchemy.
Choi stated that the investments would enhance Coinbase’s long-term financial and strategic position. This stance may be correct, considering how Microsoft purchased interests in once-up-and-coming startups like Facebook in the past.
While the company’s venture investments may yield a long-term windfall, owners are likely to get more irritated with the stock’s free-fall, which had dropped as low as $61 in after-hours trading, a far cry from the $350 levels seen when Coinbase went public last year.
The financial performance of Coinbase did not bother Coinbase management. Despite incurring their first quarterly loss since becoming a public company, they declared that they had no plans to lay off workers.
According to Alesia Haas, CFO, profitability is a decision or an investment in the organization. On the other hand, she decided to put her money into her company.
Coinbase’s long-held ethos of developing for long-term success was reiterated by Haas and CEO Brian Armstrong. Coinbase’s huge crypto holdings, as well as its strategic partnerships, act as a moat against competitors, according to analysts.
Coinbase has gone through numerous crypto market downturns, according to Armstrong, and they have no intentions to pivot. Newer staff, according to Armstrong, will gain from personal experience with crypto’s cyclical nature.
In the end, despite its dismal earnings and stock price performance, Coinbase appears to be committed to sticking the course—whether its shareholders like it or not
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