Coinbase Reports a Major Loss
As the crypto market continues to make waves, Coinbase, the major American cryptocurrency exchange, has reported a substantial loss.
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According to Reuters, Coinbase Global Inc (COIN.O) missed estimates for first-quarter revenue, with its shares plunging 12.7% to $63.71 in extended trading on May 10. Since the company’s market debut in 2021, its stock values shed 71%. Meanwhile, its total revenue slumped 35% in total revenue to $1.17 billion for the three months ending on March 31.
Coinbase shares further plummeted nearly 25% in early trading Wednesday morning, hitting their lowest level ever.
Trade volumes took a hit as well, falling from $335 billion a year earlier to $309 billion for the quarter ended March 31. Retail trade tumbled 38% to $74 billion.
Common shareholders lost a total of s $429.7 million, or $1.98 a share, for the three months ended March, compared with net income of $387.7 million, or $3.05 a share, in 2021. The exchange is also expecting an even more substantial drop because of the bear market.
The first quarter of 2022 continued a trend of both lower crypto asset prices and volatility that began in late 2021,
Coinbase said in a letter to shareholders.
Despite problems, the company said that it remains “as excited as ever about the future of crypto.”
Bitcoin, which is currently trading at just over $30,000, made up 24% of Coinbase’s trading volume.
With the mother-of-all-crypto down by 21.78% in the past seven days, the cryptocurrency market is taking a serious hit as a result of economic and geopolitical uncertainties. Among them is inflation and Russia’s war in Ukraine.
In April, Coinbase Global Inc (COIN.O) was valued at $86 billion at the end of its Nasdaq debut.
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