Coinbase is in a position where it can navigate successfully the cryptocurrency winter. They can take shares in the market at this time as well. This was revealed by the Bank Of America through a research report that they released on Tuesday.
The Bank of America said that their buy recommendations were the same, after the release of the results of the second quarter of the exchange. The results warranted a stock reaction that was muted, according to the report.
Bank of America And Coinbase
The report went on to say that the net revenue was around $803 million, which was below the consensus of the bank. Coinbase was able to adjust to a loss of $151 million. It was seen that tax, interest, amortization, and depreciation were better than what was expected.
It’s also important to note that the exchange is maintaining cautious optimism. Its possible for the exchange to reach the goal of upwards of $500 million of adjusted EBITDA loss for the year. Shares of Coinbase fell by around 8%, and trading that was premarket was at $80.74.
According to the Bank of America, Coinbase did not have counterparty exposure when it came to cryptocurrency insolvencies viewed in the second quarter. The risk management practices employed will have a positive differentiating effect over the long term, for the stock, according to the bank.
JPMorgan on the other hand has said that Coinbase has endured a quarter that was challenging. Some analysts, however, did note things that were positive.
