Coinbase Reported $557 Million Quarterly Loss As Crypto Winter Continues After FTX Crash

news7f02/22/2023

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Coinbase Global Inc reported a fourth-quarter loss on Tuesday, as trading volumes at the crypto exchange came under pressure from an industry-wide downturn caused by a series of well-known bankruptcies.

The digital asset market has suffered from gloomy sentiment over the past year, but the biggest blow to the sector has come from the bankruptcy of major crypto exchange Sam Bankman-Fried. FTX in November.

CEO Brian Armstrong said on a call with analysts during a call with analysts: “After the failure of FTX and other crypto companies, we have seen scrutiny. stricter regulatory authority. Coinbase.

Amid the market downturn, the trading volume at the crypto exchange dropped to $145 billion (approximately Rs 12,000,000) in the fourth quarter, compared with $547 billion (approximately 45,30,665 billion). Rupees) a year earlier.

Retail traders also retreated significantly, with trading volume for the quarter plummeting by nearly 89% to $20 billion (approximately Rs 1,65,655).

One bright spot was subscriptions and services revenue, which grew about 33% to $282.8 million (about Rs 2,335 crore) in the fourth quarter, benefiting from a sharp increase in interest rates.

Shares of Coinbase rose slightly in volatile trading after the bell.

The cryptocurrency exchange forecasts first-quarter subscriptions and services revenue of $300 million (approximately Rs 2,500) to $325 million (roughly Rs 2,700 crore), higher than Wall Street estimates of around 285, $7 million (about Rs 2,360), according to Refinitiv data.

“I think it’s a pretty good report with an encouraging outlook. We’ll see how the stock price stabilizes,” Oppenheimer analyst Owen Lau told Reuters.

The company reported net sales of $605 million (approximately Rs 5,010) for the quarter, compared with $2.49 billion a year earlier.

Coinbase reported a net loss of $557 million (about Rs 4,600 crore) for the three months ended December 31, compared with a profit of $840 million (roughly Rs 7,000) a year earlier.

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