Coinbase records net loss of $ 79 million, but exceeds expectations

Coinbase records net loss of $ 79 million, but exceeds expectations

On May 4th, Coinbase glyly reported the fifth quarter in a row with losses. The results show that, despite the recovery of the cryptom markets, customers and investors fell out of favor with the company in the first quarter.

The company recorded a loss of $ 79 million, which is much less than the $ 430 million that had lost it in the same period of the previous year. The net loss per share was $ 0.34

The results have exceeded the expectations of the analysts, which meant losses of $ 316 million or $ 1.45 per share.

The total turnover was $ 772.5 million, which was 37 % less than sales of $ 1.1 billion in the first quarter of 2022. However, the total operating costs were less than $ 900 million, which, according to the report, led to a loss of $ 124 million. The losses were limited by a 20 percent reduction in Coinbase workforce in January.

Coinbase-single trading volume declined

The company's retail activities did not grow in the first quarter despite a 50 percent profit for the cryptoma markets. The entire trading volume fell from $ 309 billion a year ago to $ 145 billion for the period. As a result, the total transaction revenue fell by 63 % to $ 375 million from more than $ 1 billion a year ago.

Coinbase, however, has some of the highest fees in the industry, so that experienced dealers may have searched for alternatives.

Coinbase is in a regulatory swamp with threats of SEC enforcement measures and various lawsuits that arise. Chief Legal Officer Paul Grewal said that the legal dispute with the SEC could be lengthy, but the company assumes that it is fully operational in the meantime.

This week the company announced that it would hire its coinbase Borrow services on May 10th. However, it was not clarified whether this is due to regulatory pressure.

The company was also made this week by a lawsuit in which managers were accused of unloading stocks in the millions to prevent losses from insider trade.

Coin price spurts

According to Marketwatch, the company's shares rose by almost 9 %in post -market trade. As a result, the coin prices reached $ 53.75

In addition, the shares of Coinbase have increased 60 % since the beginning of the year, but remain 84 % below their maximum price of $ 343 in November 2021.

Coin is currently around 36 % below its high of $ 84 in 2023 on March 21, since the regulatory pressure increases. In comparison, the cryptoma markets only decreased by 7.5 % compared to their high of 2023 in mid -April.

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