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Seeking Alpha 2022-06-24 21:43:17

Coinbase's Strategy Has Backfired, Leaving The Stock With Further Downside

Coinbase announced a reduction of its workforce by 1,100 employees or 18% of headcount. But the company is still forecast to operate at a loss for the foreseeable future.The CEO's stated policy to operate at breakeven, assuming that crypto prices will increase over time, now looks far too ambitious.Given the very high levels of risk involved and the ongoing losses, the stock should be trading at a discount to book value.

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