Coinbase slumped on Monday, closing at $263.95 per share, down 7.06%, and continued to slide in pre-market trading on Tuesday.
The Brian Armstrong-led company, whose transaction-fee revenue is heavily tied to crypto asset prices and trading volumes, is vulnerable as the sector remains under pressure.
Bitcoin fell below $90,000, revisiting levels last seen in April, and dragged Ethereum, Cardano and Solana lower as crypto prices wavered.
Coinbase posted strong third-quarter earnings of $1.9 billion, but also scrapped a $2 billion BVNK acquisition, signaling strategic recalibration.
Coinbase currently holds about $1.6 billion in Bitcoin.
The dip came amid a broader market slump, spurred by factors including the ongoing crypto-market crash and growing anxiety over tariffs, inflation and other economic pressures facing the Trump administration.
Bitcoin tumbled below $90,000, revisiting levels last seen before its significant plunge to $74,400 in April, a move linked to concerns over President Trump’s tariff policies.
Coinbase has been hot and cold as of late.
Indeed, it reported an impressive third-quarter earnings report — $1.9 billion in revenue, a 25% increase from the previous quarter.
It also forged a new partnership with JPMorgan to support JPM Coin.
However, the soon-to-be-based-in-Texas company reportedly called off a $2 billion acquisition with BVNK, a London-based startup specializing in cross-border payments using stablecoins.
The deal was meant to be a strategic move to diversify beyond crypto trading fees and position itself as a broader fintech player.
BVNK, which has attracted investment from Citi Ventures and Visa Ventures, would give Coinbase a foothold in the growing stablecoin economy.
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