The global financial services provider Wells Fargo has expressed significant worry over the cryptocurrency exchange Coinbase. Because of the growing competitiveness and economic pressures, the business announced that it will sell its shares in Coinbase.
CNBC reports that Wells Fargo opens Coinbase with underweight, which the news organization says is the case. At the time of writing, Coinbase can be purchased for $65.29. During the premarket hours, it has had a decline of 3%.
According to a statement made by Wells Fargo, the company has faith in the potential value of the cryptocurrency exchange. But, the company recognizes that it had an early competitive edge, which has now been diminished as a result of increased competition.
Even for a huge financial institution like Wells Fargo, keeping onto one of the largest cryptocurrency exchanges in the world during a bear market might be hard given the extent to which Coinbase was impacted by the drop in the crypto market.
The most recent earnings report for Coinbase was published on August 9th of this year. The cryptocurrency exchange announced earnings per share of $4.95 for the quarter, which was $1.91 lower than the average forecast of $3.04 per share.
Coinbase Global had a return on equity that was negative by 4.61% and a negative net margin that was negative by 4.79%. In comparison to the general consensus projection of $877.32 million in sales for the quarter, the company reported revenue of $808.33 million.
The consensus forecast among equities experts is that Coinbase Global will report a loss of -11.12 dollars per share for the current financial year.
