By Will Feuer


Shares of Coinbase Global Inc. surged almost 16% in midday trading Wednesday after the company said it "had no financing exposure" to bankrupt crypto firms Celsius Network LLC and Voyager Digital Ltd, as well as collapsed hedge fund Three Arrows Capital Ltd.

"Solvency concerns surrounding entities like Celsius, Three Arrows Capital (3AC), Voyager, and other similar counterparties were a reflection of insufficient risk controls, and reports of additional struggling firms are fast becoming stories of bankruptcy, restructuring, and failure," Coinbase executives said in a blog post.

"We believe these market participants were caught up in the frenzy of a crypto bull market and forgot the basics of risk management," they said. "We have not engaged in these types of risky lending practices and instead have focused on building our financing business with prudence and deliberate focus on the client."

Shares of Coinbase jumped almost 16% to $76.21 in midday trading. The stock is still down almost 70% so far this year amid a broader rout in the crypto market.


Write to Will Feuer at Will.Feuer@wsj.com


(END) Dow Jones Newswires

07-20-22 1225ET