Coinbase shares shrug off S&P downgrade

Coinbase shares shrug off S&P downgrade

Coinbase shares were 5% higher on Friday as investors appeared to largely shrug off yesterday’s S&P downgrade.

The rating agency’s move cited the company’s disappointing earnings report earlier this week, in which the cryptocurrency trading platform reported a $1.1 billion loss for the second quarter. S&P Global Ratings cut Coinbase’s long-term issuer credit rating and senior unsecured debt ratings to BB from BB+ days.

“The downgrade reflects our view that weak earnings have weakened the company’s coverage ratios and that cyclical variations for Coinbase have increased beyond our previous expectations due to market share erosion and a higher risk of margin compression,” the agency said. “Moreover, competitive risk has intensified in the crypto exchange sector, with the …

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