Coinbase Global Inc (NASDAQ:COIN) stock fell sharply Monday, dragged down by a crypto-market crash and broader Wall Street anxiety. The general market is facing its worst weekly slump for tech stocks since April, with investors cautious ahead of new economic data and Nvidia’s highly anticipated earnings.
What To Know: The primary driver for Coinbase’s decline Monday was a sector-wide decline for digital assets. Bitcoin (CRYPTO: BTC) crashed below the critical $92,000 level, hitting its lowest point in over six months. Ethereum (CRYPTO: ETH) also lost the $3,000 mark, leading a rout that included XRP (CRYPTO: XRP) and Dogecoin (CRYPTO: DOGE).
Monday’s crypto crash is impactful for Coinbase stock because the company’s revenue is intrinsically linked to crypto asset prices and trading volume.
A sudden, steep collapse, which reportedly liquidated over 140,900 traders, negatively impacts investor confidence. This triggers fears of a prolonged crypto winter, which could significantly reduce the transaction-fee revenue that Coinbase fundamentally relies on.
The sharp sell-off overshadows several recent positive developments for the company, including a strong third-quarter earnings beat on its “Everything Exchange” strategy, a new partnership to utilize its blockchain for JPM Coin and the launch of a new pre-listing token access platform.
Benzinga Edge Rankings: Despite the day’s downturn, Benzinga Edge Rankings highlight the stock’s exceptionally strong Growth score of 94.98.
COIN Price Action: Coinbase shares were down 7.95% at $261.43 at the time of publication on Monday, according to Benzinga Pro data.
How To Buy COIN Stock
By now, you’re likely curious about how to participate in the market for Coinbase — be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
In the case of Coinbase, which is trading at $260.82 at some point on Monday, $100 would buy you 0.38 shares of stock.
If you’re looking to bet against a company, the process is more complex. You’ll need access to an options trading platform or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option or sell a call option at a strike price above where shares are currently trading — either way it allows you to profit from the share price decline.
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