Today was actually a very big day for Coinbase (NASDAQ:COIN). First, Bitcoin (BTC-USD) slid to its lowest level in three months, prompting a slump in a range of crypto stocks, Coinbase included. But then, several other items kicked in, and Coinbase’s slip kept right on going well into Thursday afternoon’s trading session. First came the revelation that Coinbase might be losing some ground in crypto trading to none other than mobile stock trading app Robinhood (NASDAQ:HOOD).
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Mizuho Securities, by way of analyst Dan Dolev, noted that Coinbase might be losing some ground in market share thanks to Coinbase’s higher fees for small trades. Dolev pointed out that the combined share of Coinbase and Robinhood was noticeably down on Coinbase’s side, with Robinhood making up more of the combination in April against the three quarters preceding same.
Second, Coinbase announced that it was planning to repurchase $64.5 million worth of 0.50% convertible senior notes that were due in 2026. It would buy those notes back immediately, but at a pretty hefty discount, offering up roughly $45.5 million in cash. That’s a roughly 29% discount to par value. It won’t be a complete payoff, however, as close to $1.37 billion in notes will still remain outstanding.
Analysts are less than pleased with Coinbase and are nearly perfectly split on its likely trajectory. With eight Buys, nine Holds, and seven Sells, Coinbase stock is considered a Hold by analyst consensus. Further, with an average price target of $58.85, it offers its investors 9.75% upside potential.
