S&P Global downgraded the institutional rating of the Coinbase bitcoin exchange from ‘BB+’ to ‘BB’ and maintained the outlook as ‘negative’. CoinDesk writes about it.

Analysts justified the “weak revenues and competitive pressures” decision.

“The company’s market share has dropped this year. The increased risk of margin squeeze, high volatility in revenue, combined with the EBITDA and EBITDA margin of previous estimates, has forced us to reassess our financial risk assessment.” experts explained.

The rating action is also driven by “uncertainty about the duration of the crypto winter and the potential for further market share declines.”

Recall that in the second quarter Coinbase recorded a loss that was twice as high as forecast.

In July, ARK Invest Katie Wood got rid of $75 million in shares of the Bitcoin exchange. The decision was made against the background of information about the investigation. SEC Coinbase activities.

The platform has confirmed receipt of requests from the regulator regarding transactions, products, and listings.

In August, two class action lawsuits were filed against Coinbase. According to the documents, the exchange offered investors crypto assets that must be registered as securities.

Previously, Coinbase had agreed to cooperate with BlackRock. Clients of the latter will have direct access to digital asset trading through a portfolio management system. Aladdin.

Also, the bitcoin exchange has opened up the possibility of staking Ethereum for institutional clients.

Read ForkLog bitcoin news in our Telegram – cryptocurrency news, courses and analysis.