Coinbase Tumbles Amid Q2 Revenue Decline
CSOP's 2x Leveraged Long Coinbase (07711) took a significant hit, falling nearly 13% in value. At the time of writing, it was trading at HK$17.74 with over HK$2 million in volume. The drop comes on the heels of Coinbase's latest financial report, which showed a 14% decline in total revenue quarter-over-quarter for Q2.
According to the report, Coinbase brought in USD 1.22 billion in revenue during the second quarter, falling short of analysts' expectations of USD 1.29 billion. However, the company's adjusted EBITDA remained steady at USD 208 million, marking its 14th consecutive profitable quarter.
CMB International responded to the news by lowering its FY26-28E total revenue forecasts for Coinbase by 15-17% and reducing its sum-of-the-parts (SOTP)-based target price from USD 235.0 to USD 205.0.