Given the sharp drop in share prices, JPMorgan expects Coinbase and Robinhood to lower employee equity grants via RSUs, though it still expects “share creep from RSU issuance will drive dilution to a still substantial 7% pace annually in coming years.” The bank estimates if that 7% pace were to persist for five straight years, it could reduce the value of each company to existing shareholders by 30%.
Coinbase, Robinhood Shareholders Face Significant Stock Dilution: JPMorgan
