As Crypto Prices Plunge, Cathie Wood Is Selling This 1 Bitcoin Stock

Core Insights - Coinbase is the leading U.S. cryptocurrency exchange, facilitating the buying, selling, trading, and storage of digital assets, including Bitcoin and Ethereum, with a focus on security and user-friendly features [1][2] Company Performance - Coinbase reported a record third-quarter revenue of $1.87 billion, a 55.1% increase year-over-year from $1.21 billion, surpassing analyst expectations by 4.9% [6] - Non-GAAP EPS reached $1.44, exceeding forecasts of $1.17 by 23.2%, indicating strong profitability driven by high transaction fees and diversified income streams [6] - Adjusted EBITDA rose to $801 million with a 42.9% margin, exceeding expectations by 11.8% due to efficient operations [7] - Operating margin improved to 25.7% from 14.1% year-over-year, supported by increased trading activity from both consumers and institutions [7] - Free cash flow turned negative at $784.5 million, down from positive $328.5 million, attributed to significant investments in growth [7] Stock Performance - Coinbase's stock has experienced significant volatility, dropping 9% over the past five days, 32% in the last month, and 48% over three months, with year-to-date losses at 28% [3] - Over the past 52 weeks, shares are down 42% and 63% from the peak of $444.64 [3] - Compared to the S&P 500 Financials index, COIN stock has underperformed, with negative returns contrasting the index's typical gains of 2% over three months and 4.5% over 52 weeks [4]