Crypto exchange Coinbase reports for the third quarter of 2021, which ended 30 september. Compared to the previous quarter, the trading volume on the platform has 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. Analysts 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 of 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, Bitcoin price fell from $ 60,000 in April to $ 30,000 in July.
Robinhood also spoke about the decline in interest in digital currencies. 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, highly dependent on the situation on the cryptocurrency market. For comparison: for 40 days, from 29 September to 8 November, bitcoin has grown by 65%, Coinbase shares - on 60%. Investors have already incorporated the growth of activity on the stock exchange into the company's share price. Coinbase confirms: the number of active users and the trading volume in the fourth quarter will be higher, than in the third.
Bitcoin price has been rising since October, which means, Coinbase May Post Strong Q4 Report. But investors should remember: so correlation volatile cryptocurrencies and company shares carry the risk.
Coinbase itself rightly says this.: “The results from the beginning of the year to the present have shown, that our business is unstable. Coinbase is not a quarter-to-quarter investment, 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 $.