Coinbase Trading Revenue In Q3 Down 44% Compared To Q2
Cryptocurrency exchange Coinbase reduced its third-quarter loss by 50% to $545 million from $1.1 billion in the second quarter. However, trading revenue was $366 million, down 44% from Q2 due to a drop in trading volume.
Today, Coinbase revealed its latest earnings report. According to the report, it announced a narrower loss and said revenue fell for the third consecutive quarter.
According to the financial report released by Coinbase, due to the decrease in active users, Coinbase’s trading revenue for Q3 was $366 million, down 44% from Q2.
Among the factors Coinbase cited for this decline was that “trading volume has been shifting away from the U.S., where our business is concentrated”. It noted that this shift is partly due to the “perception of uncertainty” that some digital asset issuesrs may have about the U.S. regulatory framework for cryptocurrencies.
Meanwhile, Coinbase’s third-quarter subscriptions and services revenue grew 43% sequentially to $211 million, driven by increased interest income. Crypto exchange cut its third-quarter losses by 50% to $545 million from $1.1 billion in the second quarter.
Total operating expenses were $1.1 billion, down 38% compared to the second quarter. Total net income of $576 million was below FactSet’s consensus estimate of $646 million and $803 million lower in the second quarter.
In a letter to shareholders, Coinbase said its trading revenue continues to be significantly impacted by macroeconomic and crypto market trends, is expected to continue into 2023, with trading volume also shifting offshore.
As previously reported, Product Manager Surojit Chatterjee of exchange has announced that he will be stepping down at the end of November.
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