(Reuters) -Coinbase Global Inc missed estimates for first-quarter revenue on Tuesday and posted a loss as turmoil in global markets curbed investor appetite for risk assets including trading in cryptocurrencies.
Shares of Coinbase plunged 12.7% to $63.71 in extended trading after the cryptocurrency exchange operator also reported a fall in trading volumes and forecast an even bigger drop in the current quarter due to a decline in crypto asset prices.
Among its mix of crypto assets, bitcoin accounted for 24% of trading volume, up 16% from the prior quarter but down 39% from a year earlier. https://bit.ly/3Fww0Fs
The cryptocurrency market has been roiled by extreme volatility due to economic and geopolitical uncertainties such as fears of rising inflation and the impact of Ukraine war, leading to a sharp drop in their prices.
Bitcoin has nearly halved from the record high hit in November last year as the world’s largest digital asset becomes a major target of governments and regulators looking to crack down on privately operated currencies.
Coinbase reported a 35% slump in total revenue to $1.17 billion for the three months ended March 31. Analysts had expected revenue of $1.48 billion, according to IBES data from Refinitiv.
Trading volumes fell to $309 billion for the quarter ended March 31 from $335 billion a year earlier. Retail trading took a big hit, with volumes tumbling 38% to $74 billion, although the institutional side grew 9% to $235 billion.
Net loss attributable to common shareholders was $429.7 million, or $1.98 a share, for the three months ended March, compared with net income of $387.7 million, or $3.05 a share, a year earlier.
Coinbase shares have shed 71% since their market debut last year though a direct listing.
(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Anil D’Silva)
