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Cryptocurrency exchange Coinbase reported a third-quarter loss of $2.2 million on Thursday, and shares fell during after-hours trading as the firm posted better-than-expected financial results for the third time this year. On a per-share basis, the exchange lost $0.01 on $674 million in revenue, while analysts expected a loss of $0.70 on $670 million in revenue for the quarter. Coinbase’s shares, which trade on Nasdaq under the COIN ticker, were down 4% to $81 during after-hours trading. During the same period a year ago, the San Francisco-based firm lost $545 million, amid a lull in cryptocurrency prices and shrinking revenue from transactions on its platform. But it appears customers could be warming up from Crypto Winter. In a letter to shareholders, the crypto exchange highlighted $105 million in transaction revenue for October. Still, it urged investors to be cautious about “extrapolating these results”. Coinbase’s Vice President of Investor Relations Anil Gupta told Decrypt that low transaction revenue came alongside the lowest point of volatility that the crypto market has seen since 2017. In addition to revenue from transactions, the crypto exchange’s business has leaned on revenue from subscriptions and services, which includes its staking products and interest on assets backing reserves of Circle’s stablecoin USDC. Subscriptions and services revenue overtook transactions as Coinbase’s primary money maker last quarter. Coinbase acquired a stake in Circle, dissolving the Centre Consortium that was founded to issue crypto’s second-largest stablecoins. Interest on dollar reserves backing USDC will be split between Coinbase and Circle equally, the exchange said. Coinbase shares have surged nearly 150% since the start of this year, climbing from $33 in January to $84 when markets closed on Thursday. Over the past week, Coinbase’s stock has increased nearly 10%, rising alongside parts of the crypto market. The Securities and Exchange Commission sued Coinbase in June, and the firm submitted its final argument to have the lawsuit tossed out last week. Coinbase reported a third quarter loss of $2.2 million, and shares fell during after-hours trading. Despite the loss, the exchange posted better-than-expected financial results, and transaction revenue of $289 million. Coinbase also highlighted $105 million in transaction revenue for October, and its Vice President of Investor Relations Anil Gupta said low transaction revenue came alongside the lowest point of volatility that the crypto market has seen since 2017. Revenue from subscriptions and services overtook transactions as Coinbase’s primary money maker last quarter. Anticipation for a spot Bitcoin ETF on Wall Street has been the primary driver of Bitcoin’s recent rally toward $35,000, and Coinbase is hoping to benefit from this. The firm is also optimistic about the early utility of Base, the company’s Ethereum layer-2 network. Coinbase shares have surged nearly 150% since the start of this year, and investors haven’t been swayed by the firm’s regulatory headwinds. #Coinbase #CryptoExchange #Cryptocurrency #BitcoinETF #BaseNetwork
You can read more about this topic here: Decrypt: Coinbase Reports $2.2 Million Q3 Loss, Beats Wall Street Predictions Third Time This Year
