In December of 2021, crypto exchange Coinbase Global (COIN) was about to cap a banner year: it had gone public with a valuation north of $85 billion and a $328 share price, raised over $3 billion through corporate bond offerings, and would ultimately take in $7.8 billion in annual revenue.
The crypto exchange is on track to close out 2022 in a very different place. Coinbase stock dropped 9.1% last week, only to fall to a new all-time low of $34.51 on Monday, before closing at $35.17. Its bonds maturing in 2028 have gone from trading at 93 cents on the dollar in January to about 53 cents on the dollar on Monday. As Barron’s Joe Light recently reported, yields on company bonds maturing in 2026 have traded at distressed-debt levels that signal more concern about possible default or downgrade.