Coinbase, the largest cryptocurrency exchange in the United States, reported its third fiscal quarter results, failing to meet Wall Street analysts’ expectations for revenue, sending its stock down more than 13% during extended trading.
Coinbase reported earnings of $1.62 per share during the third quarter and collected $1.31 billion in revenue, compared to analyst expectations of $1.57 billion, and the company stated that the number of monthly active traders decreased from 8.8 million during the second quarter to only 7.4 million during the third quarter, but the number was higher compared to the same period last year when the company recorded 6.1 million traders.
Trading volume also fell from $462 billion in the second quarter to $327 billion, but Coinbase said it expects to record higher monthly user numbers and trading volume in the fourth quarter than in the third.
Net revenue more than quadrupled from last year to reach $1.23 billion, but it was down compared to the second quarter when it reached $2 billion, and it is worth noting that most of Coinbase’s success depends on the performance of digital assets such as Bitcoin, which set a new record value of $68,000 on Monday, and Ether also hit a record high of $4,800.
It is noteworthy that Coinbase had put its shares for trading on the stock markets last April at a price of $381 per share, and its market value briefly reached $100 billion, but its share fell to $221 in July and rebounded over the past month to close at $357.39 on Tuesday.
Facebook, now known as Meta Platforms, said it has hired Coinbase services to manage the logistics of launching a new digital wallet for cryptocurrency. To read more [Facebook Officially Changed Its Name To Meta].