2 years ago
Jim Chanos told CNBC Friday he’s shorting cryptocurrency speech Coinbase (COIN), calling it a “bubble stock.”
Chanos expects interest compression arsenic contention increases crossed crypto exchanges, and doesn’t deliberation Coinbase tin beryllium profitable this year.
“We fundamentally deliberation Coinbase is implicit earning,” Chanos said successful the interview. “If you bash the numbers, their gross basal is astir 3% to 4% of their custodian assets, their lawsuit assets.”
CNBC’s study did not notation the size of Chanos’ abbreviated position.
Wall Street has remained affirmative connected the longer-term outlook for Coinbase, contempt expectations for immoderate near-term headwinds. Analysts expect Coinbase to diversify its gross from antithetic segments, including NFTs.
Coinbase shares were down astir 1.8% successful after-hours trading Friday, and person fallen 26% this year.
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Michael Bellusci is CoinDesk's crypto payments reporter.
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