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Shares of Coinbase plunged 12.7% to $63.71 in extended trading
after the cryptocurrency exchange operator also reported a fall
in trading volumes and forecast an even bigger drop in the
current quarter due to a decline in crypto asset prices.
Among its mix of crypto assets, bitcoin accounted for 24% of
trading volume, up 16% from the prior quarter but down 39% from
a year earlier. https://bit.ly/3Fww0Fs
The cryptocurrency market has been roiled by extreme volatility
due to economic and geopolitical uncertainties such as fears of
rising inflation and the impact of Ukraine war, leading to a
sharp drop in their prices.
Bitcoin has nearly halved from the record high hit in November
last year as the world's largest digital asset becomes a major
target of governments and regulators looking to crack down on
privately operated currencies.
Coinbase reported a 35% slump in total revenue to $1.17 billion
for the three months ended March 31. Analysts had expected
revenue of $1.48 billion, according to IBES data from Refinitiv.
Trading volumes fell to $309 billion for the quarter ended March
31 from $335 billion a year earlier. Retail trading took a big
hit, with volumes tumbling 38% to $74 billion, although the
institutional side grew 9% to $235 billion.
Net loss attributable to common shareholders was $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, a year
earlier.
Coinbase shares have shed 71% since their market debut last year
though a direct listing.
(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Anil
D'Silva)
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