HomeCryptocurrenciesCoinbase Cash Reserves Should Help Them Survive Winter

Coinbase Cash Reserves Should Help Them Survive Winter

Although Wall Street’s estimates for Coinbase’s second quarter were higher than the actual result, analysts are claiming that the cryptocurrency company will do just fine in the near future.

Indeed, amid disappointing recent results, it’s surprising to see such optimism in lieu of what many are predicted will be a “Crypto Winter.”

This is even more shocking when you consider the fact that Coinbase posted a $1.1 billion net loss—yes, you read that correctly. Things aren’t looking great for them, but finance experts seem to think that these bumps on the road are merely on the surface.

According to many of these experts, the reason Coinbase will survive this “Crypto Winter” is because the company holds a solid wellspring of cash reserve.

According to MoffettNathanson partner Lisa Ellis, Coinbase holds $500 million in Circle’s stablecoin, in addition to its already reported $5.68 billion in cash.

In other words, the company has a lot of financial security for the near future, giving them room to stumble here and there. The question is, how much of a beating will they need to endure before finding themselves profiting again? That much is unclear right now, but investors can at least take solace in the fact that analysts aren’t worried.

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