Coinbase Global Inc, a U.S. cryptocurrency exchange, reported a nearly 30 percent drop-in third-quarter trading volumes on a sequential basis on Tuesday, owing to lower volatility and falling Bitcoin and other cryptocurrency prices. Coinbase trading volumes dropped to $327 billion in the third quarter, down from $462 billion the previous quarter.
Bitcoin accounted for 19 percent of this, down from 24 percent the previous quarter. The company’s stock dropped 13 percent after the bell in after-hours trading. Total revenue dropped to $1.31 billion from $2.23 billion the previous quarter, falling short of analysts’ expectations of $1.57 billion.
“Our business is volatile, as our year-to-date results have plainly proven,” the company wrote in a shareholder letter. “Coinbase is a long-term investment in the expansion of the cryptoeconomy and our capacity to serve customers through our products and services, not a quarter-to-quarter investment.” This is a viewpoint that we encourage our investors to adopt.”
The mainstreaming of digital assets has benefitted crypto exchanges, with corporations all around the world investing substantially in building their crypto infrastructure.
The company cancelled plans to launch a crypto loan product in September after learning that the Securities and Exchange Commission (SEC) prepared to sue over the product. Coinbase also announced plans to develop a marketplace for nonfungible tokens and to allow consumers to deposit wages into their accounts throughout the quarter.
Facebook, now known as Meta Platforms, recently announced that it had hired Coinbase to handle logistics for its new cryptocurrency digital wallet.
Calls for increased regulation of cryptocurrency trading and products, on the other hand, sparked a precipitous drop in Bitcoin values earlier this year. A net income of $405.34 million, or $1.62 per share, was attributed to common stockholders. According to Refinitiv’s IBES statistics, analysts predicted a profit of $1.57 per share.
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