Coinbase crashes by 13%
Shares of Coinbase plunge more than 13% in extended trading after the company came with 3Q revenue of $1.31 billion, missing Wall Street’s estimates.
Trading volumes dropped to $327 billion in the quarter from $462 billion in the previous quarter.
US cryptocurrency exchange platform Coinbase blamed market turbulence and lower prices in a part of the third quarter. “In lower volatility periods, we see our low-dollar traders become less active,” CFO Alesia Haas noted during the earnings call to analysts.
Coinbase $COIN just reported earnings posting numbers of— Stock Market News (@StockMKTNewz) November 9, 2021
EPS of $1.62 missing expectations of $1.79
Rev of $1.31B missing expectations of $1.57B
Coinbase expects more users: between 8 million and 8.5 million such users, up from 5.5 million to 8 million projected earlier, raising significantly the full-year average monthly transacting user guidance, but the transaction-based revenue dropped lower from the previous quarter levels.
$COIN Q3 Earnings— Market Rebellion (@MarketRebels) November 9, 2021
Revenue: $1.31B vs. $1.56B Expected
EPS: $1.62 vs. $1.79 Expected
“Our strategy supports all legal assets since we are uncertain of which assets our customers will adopt,” said Haas. You would see less Bitcoin and Ethereum in Coinbase’s trading volume:
Coinbase was set up in 2012 to make it easier to trade crypto assets, the platform claims to have more than 70 million active users.
SCOOP: Coinbase is testing a new subscription service that offers users zero trading fees + prioritized support $COIN— Frank Chaparro (@fintechfrank) November 3, 2021
"Customers in the test group will have the ability to buy, sell, and convert digital currencies on the Coinbase platform without a Coinbase fee for each trade"