Coinbase, MicroStrategy Bonds Tank as FTX Collapse Dents Institutional Confidence in Crypto

Source: CoinDesk

“Bonds issued by cryptocurrency exchange Coinbase (COIN), and MicroStrategy (MSTR), a business-intelligence company and investor in bitcoin, have slumped as investor confidence in the industry slid in the wake of FTX’s collapse. Coinbase’s bond due 2031 has dropped 15% this month to 50 U.S. cents on the dollar, according to data source Finra-Morningstar, sending the yield — which moves in the opposite direction to price — to a record high 13.5%. … Bonds tied to MicroStrategy, a business-intelligence company and a bitcoin holder, have taken a similar beating. … Last week, Goldman Sachs maintained a sell rating on Coinbase shares and slashed its 12-month price target to $41 from $49, saying the once FTX-induced volatility subsides, the lower level of crypto prices and the potential for reduced investor confidence will weigh on trading volumes. Shares in Coinbase have dropped 31% this month, ending Friday at $45.26.” (11/21/22)