Goldman Sachs expects further job losses at Coinbase Global, the cryptocurrency exchange that this month revealed plans to cut about 1,100 roles in preparation for what its boss warned could be a “crypto winter”.
Analysts at the investment bank believe the exchange’s existing efforts to reduce headcount will not be enough and that Coinbase will need to make “substantial reductions” in its costs as retail trading activity dries up.
Goldman downgraded Coinbase’s shares to “sell” from “neutral”, cutting its price target to $45 a share from $70. Shares in Coinbase, which have fallen 77 per cent so far this year, fell a further 10.8 per cent, or $6.75, to close at $55.96.
The company was floated on the Nasdaq stock exchange last year with a