What happened

Shares of Coinbase Global (COIN -5.03%) found themselves on a slippery slope in April 2023. The crypto-trading exchange's stock fell 20.4% last month, according to data from S&P Global Market Intelligence. The reasons behind this painful haircut included regulatory concerns, international expansion updates, and gently fluctuating Bitcoin prices.

So what

During April, Coinbase faced several serious news items that moved its stock price.

On April 27, Coinbase posted a response to the Wells notice that the Securities and Exchange Commission (SEC) had filed in March. Paul Grewal, chief legal officer of Coinbase, said that the company hasn't listed securities but it would like to do so in the future, once the SEC provides a sensible registration process for that business. Coinbase expressed its readiness to defend itself against any litigation.

Earlier, the company received a Class F license from the Bermuda Monetary Authority, executive-level hires and new product launches in markets like Canada, Brazil, and Singapore, and a potential license for a regulated exchange in Abu Dhabi. Media reports also hinted at the launch of an offshore derivatives exchange, which then came to fruition in early May.

Bitcoin hovered in a fairly limited trading range between $27,500 and $30,500 last month. In the meantime, Cathie Wood's Ark Invest firm scooped up large amounts of Coinbase stock as April faded into May.

Now what

For investors looking for promising ideas in the crypto market, April's news paints an interesting picture for Coinbase's future. Despite regulatory uncertainties, the company is expanding internationally, with new licenses and a freshly launched derivates-trading service in Bermuda. This could strengthen its competitive position overseas and provide a meaningful revenue boost in due time.

Moreover, Coinbase's stock price has dropped 60% in the last 52 weeks, making it an enticing buy for investors who agree with Cathie Wood's bullish and opportunistic stance. With earnings set to be reported after the closing bell tonight, those who believe in the long-term growth potential of America's leading cryptocurrency exchange might want to take advantage of the current stock price dip before the next chapter unfolds.

That being said, Coinbase is also a polarizing stock with a large cohort of short-selling pessimists. Consider the bearish arguments before investing your hard-earned cash in this promising but risky stock.