After the bell on Tuesday, Coinbase announced first-quarter statistics that fell short of analysts’ revenue forecasts.
After-hours trading saw shares tumble by more than 15%, following a 12.6 percent decrease during regular trading hours before the findings were released.
Since late March, the stock has lost more than 70% of its value, owing to a general decline in IT companies and the value of cryptocurrencies.
On Monday, Bitcoin, the most popular cryptocurrency, momentarily fell below the symbolic price of $30,000, and is now down more than 30% for the year.
Coinbase use fell in the fourth quarter. Monthly transaction users (MTUs) in the retail sector declined to 9.2 million in the fourth quarter, down from 11.4 million in the previous quarter, while total trade volume fell from $547 billion to $309 billion.
Revenue was down 27% year over year, and the company posted a $430 million net loss in the first quarter.
Coinbase, on the other hand, does not seem concerned about its long-term prospects.
Due to the volatility nature of cryptocurrency price movements, the firm reiterated an argument it has previously made, reminding shareholders that their shares should be considered a long-term investment.
“We think current market conditions are temporary,” the business noted in a statement to shareholders accompanying its earnings release.
It also stated that it is concentrating on the next generation of crypto prospects, which are not limited to trading.
“While we continue to invest in and improve our primary investing platform, the crypto application age is here, led by NFDs and decentralised finance, and we are increasingly focusing our efforts on these market prospects.”
To read our blog on “Coinbase strictly regulates new crypto listings in advance,” click here.
