Moody’s Downgrades Coinbase’s Debt on Profitability Concerns

The ratings agency has also put the crypto exchange’s ratings under review for further downgrade.

AccessTimeIconJun 23, 2022 at 8:53 p.m. UTC
Updated Jun 24, 2022 at 9:47 p.m. UTC

Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.

Ratings agency Moody’s has downgraded Coinbase’s (COIN) corporate debt and also placed its debt ratings for the crypto exchange under review for further downgrade.

  • Coinbase's corporate family rating debt was downgraded by Moody's to Ba3 from Ba2, while its guaranteed senior unsecured notes was dropped to Ba2 from Ba1. According to Moody's, Coinbase had $2 billion in senior guaranteed notes due in 2028 and 2031. Moody's didn't indicate how much corporate family rating debt Coinbase had.
  • Moody’s said the downgrade reflects “Coinbase's substantially weaker revenue and cash flow generation due to the steep declines in crypto asset prices that have occurred in recent months and reduced customer trading activity.”
  • Moody’s said it expects Coinbase’s profitability to remain challenged despite announcing the layoffs of around 1,100 employees on June 14.
  • According to Moody's, as of March 31, Coinbase had $6.1 billion in cash and cash equivalents, which it called "a healthy position" relative to the company's $3.4 billion in long-term debt, which includes the $2 billion in senior guaranteed notes.
  • Coinbase's shares were down 0.3% to $58.88 after hours on Thursday after rising 13% during the day. The stock is down almost 77% year to date.

UPDATE (June 23, 21:08 UTC): Added details of Moody's debt rating moves.

UPDATE (June 23, 21:18 UTC): Added the amount of Coinbase's senior guaranteed debt.


Read more about

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.

CoinDesk - Unknown

Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.

Trending

1
CoinDesk - Unknown
Former JPMorgan Banker Samir Shah Becomes COO at Pantera Capital

Shah joins Pantera after 12 years at JPMorgan spanning roles in sales, strategy and digital.

CoinDesk - Unknown
2
CoinDesk - Unknown
First Mover Asia: Bitcoin Rebounds Past $20K; China’s Blockchain Revolution Is Missing On-Chain Data

Ether and most other major altcoins regain ground they'd lost in last week's downturn; China companies seem unconvinced by blockchain technology.

CoinDesk - Unknown
3
CoinDesk - Unknown
NFT Platforms Should Be Caught by EU Money-Laundering Overhaul, Lawmakers Say

Unhosted wallets and decentralized finance were left largely unscathed by two landmark crypto laws agreed to last week, but left-wing lawmakers may seek another go as they discuss dirty-money rules.

CoinDesk - Unknown
4
CoinDesk - Unknown
Bitcoin se recupera y supera los $19K; Nomura advierte de una recesión en EE. UU. y Reino Unido

Nomura escribió acerca de una recesión en la eurozona, el Reino Unido y Asia Pacífico, lo que podría influir en los precios de las criptomonedas.

CoinDesk - Unknown