May 12, 2022 - Economy

Coinbase CFO says "bankruptcy" note was about regulation, not solvency

Dan Primack

Coinbase on Wednesday for the first time detailed what would happen to user assets were the company to go bankrupt, a disclosure that helped drive Coinbase’s share price to new lows.

Behind the scenes: Coinbase CFO Alesia Haas tells Axios that the disclosure was prompted by new SEC guidance, not because of any solvency concerns at Coinbase.

She acknowledges the company could have done a better job communicating the reason for the disclosure, particularly given that it showed up as a "risk factor" in the midst of a crypto market rout.
Haas added that there are no plans to amend the disclosure's language.

The crypto exec didn't take the bait on questions about stock buybacks or take-private considerations, even though Coinbase clearly believes its shares are now undervalued. Were there to be a takeover effort, it's worth remembering that CEO Brian Armstrong holds voting control.

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Coinbase CFO says "bankruptcy" note was about regulation, not solvency

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