Coinbase defended at Piper on 'very strong' cash pile, expense structure

Coinbase Global ( NASDAQ: COIN ) has been stung by the ongoing cryptocurrency market downturn, ranging from its headcount reductions to deteriorations in its trading volume, though Piper Sandler analyst Richard Repetto defended the crypto exchange's stock with an Overweight rating given its "very strong cash position" and prudent expense management. The analyst contended that Coinbase ( COIN ) could capitalize on the demise of rival exchange FTX over the long run, he wrote in a note to clients. By contrast, Seeking Alpha contributor Albert Lin said that FTX's bankruptcy in November spells trouble for Coinbase . While COIN reduced its workforce by 18% in June to better manage costs, the company's headcount is still up 26% year-to-date through Q3 2022 due to its accelerated headcount growth intra-quarter in Q2, the note read. So, if the current bear market gets prolonged, then "we believe a more aggressive headcount reduction is a prudent step in managing expenses and sustaining shareholder value." In the event that the market turmoil does get extended, Coinbase ( COIN ) CFO Alesia Haas said during the exchange's Q3 earnings call that it has contingency plans in place to "lower expenses or extend our runway if needed." COIN stock gained 2.1% in Friday morning trading, even as bitcoin ( BTC-USD ) slips 0.2% to $16.94K. Previously, (Nov. 21) Famed short seller Jim Chanos said Coinbase has a business model that doesn't work .