Coinbase Sent Plummeting After Disappointing Third Quarter Earnings
Shares of Coinbase Global (NASDAQ: COIN) were sent in a downward spiral in after-hours trading on Tuesday, after the crypto exchange reported less-than dismal third quarter earnings.
Coinbase fell by more than 13% Tuesday evening, after falling short of analysts’ third quarter expectations. The crypto exchange reported revenues of $1.31 billion, missing Refinitiv consensus estimates calling for revenues of $1.57 billion. Earnings per share stood at $1.62 versus forecasts of $1.56 per share.
Coinbase also revealed that its monthly transacting users dropped from 8.8 million to 7.4 million, which is modestly better than estimates calling for 7.09 million. Meanwhile, the company’s trading volume slumped from $462 billion in the second quarter to $327 billion. “As our year-to-date results have clearly demonstrated, our business is volatile,” said the crypto exchange in a shareholder letter.
In the report, the company said that 19% of its trading volume came from bitcoin, while another 22% was attributed to ether. Various other crypto assets accounted for the remainder 59% of trading volume, marking an increase of 50% from the previous quarter. Coinbase also saw its assets jump from $180 billion in the second quarter to $255 billion by the end of September.
Coinbase has been garnering attention as of late, after a spat with the SEC prompted the company to withdraw plans to launch a crypto lending product back in September. Since then, the exchange has announced it will create a marketplace for trading NFTs, as well as allow users to put their paychecks into the account.
Information for this briefing was found via Coinbase and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
