Crypto exchange Coinbase reported for the third quarter of 2021, which ended 30 September. Compared to the previous quarter, trading volume on the platform decreased, and the company's revenue was below analysts' expectations. On the postmarket, COIN shares fell by 13%, to 310 $.
Coinbase reported revenue of $ 1.2 billion. Analyst forecast - 1.6 billion. Revenue quadrupled compared to last year, but compared to the previous, the second quarter fell by 40%. Then the exchange earned $ 2 billion.
The number of monthly active users and the trading volume also decreased qoq. Number of users - from 8,8 up to 7.4 million, trading volume - from 462 to 327 billion dollars.
Coinbase warned about such a scenario back in the second quarter.. According to the company, in July-August, activity on the exchange decreased after the fall in prices for cryptocurrencies. For example, The price of bitcoin fell from $60,000 in April to $30,000 in July.
The decrease in interest in digital currencies was also discussed in Robinhood. Two weeks ago broker Reported, that income from transactions in cryptocurrency fell in 4,5 times compared to the previous quarter, from 233 to 51 million dollars.
Coinbase income, as well as the quotes of its shares, strongly depends on the situation in the cryptocurrency market. For comparison: behind 40 days, with 29 September to 8 november, bitcoin has grown by 65%, Coinbase shares - on 60%. Investors have already included the growth of activity on the stock exchange in the price of the company's shares. Coinbase confirms: the number of active users and trading volume in the fourth quarter will be higher, than in the third.
Since October, the price of bitcoin has been rising, which means, Coinbase May Publish Strong Q4 Report. But investors should remember: Such correlation volatile cryptocurrencies and company shares carry the risk.
Coinbase itself rightly says this: “Results from the beginning of the year to date have demonstrated, that our business is unstable. Coinbase is not an investment quarter by quarter, but a long-term bet on the growth of the crypto economy and our ability to serve customers. We urge investors to accept this point of view. ".
Coinbase went public 14 April. From now on,, given the recent drop, The company's shares fell by 5%, from 328 to 310 $.
