Coinbase shares slide Tuesday as crypto play takes double-digit fall from July record

Coinbase shares slid on Tuesday after the company announced a $2 billion private offering of convertible senior notes.

Shares were last down more than 5%. The decline occurred as investors adopted a risk-off stance on Tuesday and the three major averages declined.

Coinbase is now off more than 30% from its all-time high of $444.65, reached on July 18. Shares popped in mid-July as legislators voted on a series of crypto-related bills, ending with President Donald Trump signing the GENIUS Act stablecoin legislation — the nation's first-ever crypto law. Shares have been collapsing since then.

Shares of the crypto-trading platform have been running hot since May. That month, the cryptocurrency market started to lead the way back from the market's April 8 low, and Coinbase joined the benchmark S&P 500. While investors remain optimistic on the crypto services company's long-term opportunity prospects, some on Wall Street have warned it could be time to take some money off the table as the stock's momentum starts to wane.

Last week, Citi hiked its price target to $505 from $270. The analyst said Coinbase stands to gain from legislative momentum as well as stronger bitcoin prices and improved custodial fee revenue.

An explosion in demand for crypto beyond bitcoin — particularly coins and companies in the Ethereum universe — are also widely viewed as a boon to Coinbase.

Coinbase reported disappointing second-quarter revenue last week, causing investors to sell their shares despite a stronger start to the third quarter. Coinbase is still up 21% year to date.