COIN price drops 13% after Coinbase posted a 75% drop in net income in the third quarter

Coinbase shares (COIN) were affected after the company announced Net income declined 75% in the third quarter.

Coinbase là gì? Hướng dẫn đăng ký tài khoản sàn Coinbase?

COIN closed at $ 357.39 on November 9, gaining 0.98%, but the post-market release of the Coinbase exchange’s Q3 report fell around 13.10% (at the time of this writing) in the after-hours trading together.

Coinbase posted $ 1.235 billion in revenue for the third quarter, 30% less than FactSet’s analyst estimate of $ 1.614 billion. Coinbase’s total profit was $ 406 million, down 74.7% from the previous quarter, although the figure was above analysts’ expectations of $ 380 million.

Coinbase also reported earnings of $ 1.62 per share, 10% below FactSet’s estimates.

Despite the poor performance in the third quarter, Coinbase said in the report that it was a “strong quarter” for the company, focused on deeper investor engagement on the platform and developing new products like the emerging NFT market. The company also emphasizes that it is focusing on the long term rather than the quarter:

“Coinbase is not a quarterly investment, but rather a long-term investment focused on the growth of the crypto economy and our ability to serve users through our products and services. We encourage our investors to take this point of view. “

It looks like the bad relationship between Coinbase and the US Securities and Exchange Commission is slowly weakening.

CEO Brian Armstrong first addressed the company’s problems with the SEC in September when he revealed that enforcement agencies threatened Coinbase with lawsuit if they launched a USD Coin (USDC) loan program. Armstrong has stated that the SEC is the only government agency the company doesn’t want to hit.

Yes, CEO called on the third quarter conference call that he had a “very productive” meeting with SEC Chairman Gary Gensley last week.

Coinbase posted a 41% growth in subscription services revenue of $ 145 million compared to the second quarter through channels such as the ETH 2.0 staking program, custody fee income, and token rewards income. The company also found that 7.4 million monthly trading users (MTUs) are beginning to “participate beyond the initial use case of crypto”.

“Around 28% of our retail MTUs invested and looked into at least one other product in the third quarter. Additionally, 49% of our retail MTUs interact with non-investment products such as staking, earn and Coinbase Card, including 2.8 million users who make profits on their crypto assets. “

Trading volume on Coinbase reached $ 327 billion in the third quarter, 29% less than the second quarter, with institutional investors representing $ 234 billion while retail sales represented $ 93 billion.

Ether outperformed Bitcoin in terms of trading volume for two consecutive quarters with a total volume of Ether of 22%, while Bitcoin only accounted for 19%. Other crypto assets accounted for 59% of trading volume, 18% more than in the second quarter.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article:


According to Cointelegraph

970x90.gif (970×90)