The Strategist

Shares of US largest cryptocurrency exchange plummet after quarterly results report



05/11/2022 - 10:18



Shares in Coinbase, the largest cryptocurrency exchange in the US, plummeted more than 15%. The company reported a decline in the number of active users and trading volume.



Ivan Radic via flickr
Ivan Radic via flickr
Shares of the largest US cryptocurrency exchange Coinbase fell 12.6% by the close of trading on 10 May and continued to fall outside of trading. The price per paper fell from $72.99 to $61.55.

The fall began after Coinbase reported first-quarter earnings below Wall Street analysts' expectations, CNBC notes. Coinbase reported revenues of $1.17 billion against Refinitiv's consensus estimate of $1.48 billion. The company's revenues fell 27% from a year ago. The crypto-exchange reported a net loss of $430 million in the first quarter, a loss per share of $1.98.

The company's shares lost more than 60 percent of their value between the end of March and the first-quarter report - the stock price was particularly impacted by the general decline in tech stocks and cryptocurrency rates. On Monday, May 9, the most popular cryptocurrency, Bitcoin, fell below the symbolic $30,000 per coin mark.

Investor activity in crypto-assets has declined compared to the last quarter of last year. For example, the monthly number of users who transacted fell from 11.4 million at the end of 2021 to 9.2 million in the first quarter. Total trading volume fell from $547bn to $309bn.

source: cnbc.com

 




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