Coinbase shares closed down 26% after the company revealed shrinking revenue and declining user numbers.
Coinbase reported a 27% year-over-year decline in revenue to $1.17 billion, below Wall Street expectations of $1.48 billion, and the company also reported a loss of nearly $430 million during the first quarter.
Coinbase usage decreased compared to the fourth quarter, as the number of retail users trading monthly on the platform decreased from 11.4 million users during the fourth quarter to only 9.2 million users during the first quarter, and as for the total trading volume, it also decreased from 547 billion dollars during the previous quarter to 309 Billion dollar. Read More [Coinbase Revenue Beats Expectations & Trading Volume Decline].
The results report comes amid a massive selling campaign within the technical sector and the suffering of the cryptocurrency market from a major collapse, as Bitcoin, the largest cryptocurrency in the world by market value, has lost more than 50% of its value compared to its highest level recorded in November 2021 at 68,990.90 It traded down 6% today to record levels below $30,000 for the second time this week. Read more [More Than 47% of Supply of The Bitcoin at a Loss].
Coinbase’s stock price target was lowered by analysts following the results report, citing very weak revenue and rising expenses too quickly. Neutrality while telling clients that they do not believe Coinbase will return to profit in the near term. Read More [Coinbase Shares Sharply Fall After Third Quarter Results].