Dan Dolev sees Coinbase missing Q3 revenue estimates by 10%

A Mizuho analyst predicts up to $652 million in revenue for Coinbase in Q3. Dan Dolev continues to see a major decline in the crypto stock to $27. Coinbase shares are down about 35% from their YTD highs.

Mizuho on Wednesday cut its quarterly revenue estimates for Coinbase Global Inc. The shares were down 1.0% at the time of writing.

Dan Dolev shares his views on Coinbase.

Dan Dolev now expects the crypto exchange to report earnings for the third quarter of 7.0% below previous forecasts. In a research note to clients on Wednesday:

We expect declining volumes coupled with an expected drought in retail to weigh meaningfully on 3Q earnings.

Note that Bitcoin's trading volatility increased last August to levels seen four years ago.

Therefore, the Mizuho analyst is confident that the Nasdaq-listed company's Q3 revenue consensus estimate will come in at roughly 10%. Coinbase shares are currently down 35% from year-to-date highs.

Coinbase shares fell to $27

Dan Dolev now forecasts Coinbase to report revenue in the range of $609 million to $652 million in the third fiscal quarter.

This marked a sharp decline in the platform's average transaction volume, which stood at about $1.0 billion in the second quarter, falling to $665 million in September.

So a Mizuho analyst issued an “underweight” rating on Coinbase shares this morning. His $27 price target implies a downside of more than 60% from here.

The bearish call on the stock came shortly after the crypto exchange announced that it had obtained AML, or anti-money laundering registration, with the Bank of Spain (read more). Coinbase is the largest holder of Bitcoin globally in Arkham.