quick take
- credit rating agency Moody’s The cryptocurrency exchange Coinbase has been downgraded from ‘stable’ to ‘negative’.
- The decision was made following a lawsuit from the SEC on June 6.
- However, despite the downgrade, Moody’s rationale for the rating is that website It acknowledges the company’s “healthy liquidity position.”
“Coinbase’s affirmative rating reflects the company’s strong liquidity position, recent cash flow generation improvements due to prudent expense management, and the SEC’s charges relate only to some of Coinbase’s products. because it excludes major trading products.”
- Additionally, Bitcoin layer macro analyst Joe Consorti said: It pointed out Coinbase’s debt is being sold rapidly.Joe goes on to say
“The yield is trending upwards at 14.3%, which is 1.75 times the 8.1% that most junk companies in America have to borrow. The market says Coinbase is 620bps riskier than junk.”
- Coinbase shares are currently trading at $54.90, but have fallen -16% over the past five days.
Post-Coinbase outlook downgraded from stable to negative. Moody’s first appeared on his CryptoSlate.
