Coinbase and Robinhood Shareholders At Risk Warns JP Morgan!
As per JP Morgan, coinbase and Robinhood shareholders will “face risk of higher share dilution stemming from restricted stock units.”
The declining stock price could increase share dilution by 7% annually in coming years.
“Coinbase and Robinhood, like their tech-company peers, issue substantial equity to company employees allowing companies to both attract and incentivize employees while keeping cash compensation lower,” Kenneth Worthington, JPMorgan analyst.
Shares of Coinbase closed down more than 21% Tuesday on report that it’s facing SEC’s probe into whether the platform is offering unregistered securities.