Being a publicly-traded company can have a significant impact on business momentum. Coinbase, a globally-known crypto platform, had a very solid Q4 2021. Unfortunately, its shares dipped earlier this week as the company projected a “rough” Q1 2022.
Coinbase Hits A Rough Patch
The first two months of 2022 have not been too kind to cryptocurrencies. Bitcoin and Ethereum lost much momentum, affecting all other markets too. Additionally, this bearish stint is problematic for cryptocurrency service providers, particularly those with shareholders. Coinbase is one such company, as its rocky outlook of Q1 2022 sent its shares in a downward spiral.
It is no secret that bearish conditions reduce overall trading volume. There will be days of heavy selling, but the momentum will dwindle overall. That would be rather problematic for a company noting a solid growth in Q4 2021. In fact, its Q4 revenue hit a new record of $2.5 billion, with earnings surpassing $840 million. Shareholders saw a value of $3.32 per share, up from $0.66 the year prior.
One would expect such a stellar report to prove beneficial to the Coinbase share price. Unfortunately, nothing could be further from the truth, as a 3% dip quickly materialized. That is not too problematic, yet Coinbase s shares are already down by almost 50% since the company went public in April 2021. Shareholders will not be too pleased with this development, putting tremendous pressure on the company.
Despite the negative momentum, Coinbase continues to make inroads. Appointing former Goldman Sachs exec Roger Bartlett sends a strong signal. It is not the first time executives have jumped ship from TradFi to cryptocurrency. Nor will it be the last time, as economic freedom is appealing to those who want to enforce real change.