Coinbase, Hit by Declining Cryptocurrency Prices, Falls Short on Revenue as Trading Volumes Slump 30 Percent

Calls for more oversight on cryptocurrency trading and products triggered a punishing slide in Bitcoin prices earlier this year.

Coinbase, Hit by Declining Cryptocurrency Prices, Falls Short on Revenue as Trading Volumes Slump 30 Percent

Cryptocurrency exchanges have benefited from the mainstreaming of digital assets

Highlights
  • Trading volumes fell to $327 billion (roughly Rs. 24,38,041 crore)
  • The company's shares tumbled 13 percent in trading after the bell
  • Analysts had expected a profit of $1.57 (roughly Rs. 117) per share

US cryptocurrency exchange Coinbase on Tuesday reported a nearly 30 percent fall in third-quarter trading volumes on a sequential basis, hit by lower volatility and declining prices for Bitcoin and other cryptocurrencies.

Trading volumes fell to $327 billion (roughly Rs. 24,38,041 crore) in the quarter from $462 billion (roughly Rs. 34,44,572 crore) in the second. Of this, Bitcoin comprised 19 percent, down from 24 percent last quarter.

The company's shares tumbled 13 percent in trading after the bell.

Total revenue fell to $1.31 billion (roughly Rs. 9,767 crore) from $2.23 billion (roughly Rs. 16,626 crore) in the prior quarter, also missing estimates of $1.57 billion (roughly Rs. 11,705 crore).

Crypto exchanges have benefited from the mainstreaming of digital assets, with businesses across the globe investing heavily into growing their crypto infrastructure.

However, calls for more oversight on crypto trading and products triggered a punishing slide in Bitcoin prices earlier this year. Bitcoin price in India as of November 11 at 1:14pm was Rs. 52.77 lakh.

Net income attributable to common shareholders of $405.34 million (roughly Rs. 3,022 crore), or $1.62 (roughly Rs. 120) per share. Analysts had expected a profit of $1.57 (roughly Rs. 117) per share, according to IBES data from Refinitiv.

© Thomson Reuters 2021


Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.
Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

Cryptocurrency Prices across Indian exchanges

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