Coinbase shares are down more than 20% in pre-market trading Monday.
Coinbase makes a commission when people buy and sell cryptocurrencies. Monday’s move appears to be tied to the tumbling crypto market.
Bitcoin is now trading at the lowest levels since December 2020, below $24,000, according to CoinDesk data. More than $200 billion has been wiped out of the cryptocurrency market since the start of the weekend.
Crypto lender Celsius may be partly to blame for the price decline in digital currency. The company said Monday it’s pausing all withdrawals, swaps and transfers between accounts due to “extreme market conditions.” Binance also temporarily paused bitcoin withdrawals on Monday but said the choice was because of a “stuck transaction causing a backlog”
Coinbase’s stock is down 76% year-to-date, after first-quarter earnings in May showed revenue fell 27% year-over-year as usage declined. “We believe these market conditions are not permanent and we remain focused on the long-term,” the company said at the time.
CNBC’s Ryan Brown and Arjun Kharpal contributed to this report.