Coinbase defended at Piper on ‘very robust’ money pile, expense construction (NASDAQ:COIN)

Coinbase International (NASDAQ:COIN) has been stung by the continued cryptocurrency market downturn, starting from its headcount reductions to deteriorations in its buying and selling quantity, although Piper Sandler analyst Richard Repetto defended the crypto trade’s inventory with an Chubby ranking given its “very robust money place” and prudent expense administration.

The analyst contended that Coinbase (COIN) may capitalize on the demise of rival trade FTX over the long term, he wrote in a be aware to purchasers. In contrast, Looking for Alpha contributor Albert Lin stated that FTX’s chapter in November spells bother for Coinbase.

Whereas COIN decreased its workforce by 18% in June to raised handle prices, the corporate’s headcount remains to be up 26% year-to-date by Q3 2022 attributable to its accelerated headcount progress intra-quarter in Q2, the be aware learn. So, if the present bear market will get extended, then “we consider a extra aggressive headcount discount is a prudent step in managing bills and sustaining shareholder worth.”

Within the occasion that the market turmoil does get prolonged, Coinbase (COIN) CFO Alesia Haas stated through the trade’s Q3 earnings name that it has contingency plans in place to “decrease bills or lengthen our runway if wanted.”

COIN inventory gained 2.1% in Friday morning buying and selling, whilst bitcoin (BTC-USD) slips 0.2% to $16.94K.

Beforehand, (Nov. 21) Famed brief vendor Jim Chanos stated Coinbase has a enterprise mannequin that does not work.