The coin base share crashes because the crypto exchange recorded a loss of $ 430 million
The coin base share crashes because the crypto exchange recorded a loss of $ 430 million
- Coinbase has failed the estimates of the analysts for sales in the first quarter
- The stock exchange said that the wider market conditions were to blame, but it was not afraid of a bear market
The Coinbase cryptocurrency exchange reported sales of $ 1.17 billion in the first quarter and failed to estimate the analysts. The stocks crashed by 12 % in post -interconnected trade.
"It is worth addressing only the elephants in the room, namely that the wider markets are of course on the ground," said Brian Armstrong, CEO of Coinbase, during the company Results call Tuesday.
"We tend to do our best work in skills, so I have never ironically been so optimistic where we are as a company."
The monthly active Coinbase users sank to 9.2 million and thus remained behind the consensus of the street of 9.5 million.
The total trading volume in the first quarter was $ 309 billion, a 44 % decline compared to the fourth quarter of 2021, which the stock exchange attributed to the market conditions. The company said that a further decline in transactions in the second quarter would expect, but its outlook for 2022 was "largely unchanged". Of the income of Coinbase in the first quarter, $ 1 billion from the cut of the trading fees through the stock exchange, which corresponds to a decrease of 56 % compared to the fourth quarter. The stock exchange has explained that it would like to diversify from trade fees from trade fees via futures and derivative products, prime brokerage offers and finally a subscription model with free transactions.
Coinbase collected $ 152 million in income from subscriptions and services in the first quarter.
"We believe that we are well capitalized with our balance sheet resources to support our business, and as Brian said, we continue to focus on creating great products, building our user base and preparing us for the return of the market," Coinbase said CFO Alesia Haas on the call.
The first quarter showed a continuation of a trend of lower crypto prices and increased volatility, which began in the fourth quarter of 2021, said Armstrong, something that the company was partially tackled.
"In view of the price cycles of the cryptocurrency industry, you can expect volatility in our finances," says the 2021 prospectus from Coinbase. "That doesn't worry us, because we always looked at the introduction of crypto from a long -term perspective."
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The contribution "Coinbase Stock crashes, while Crypto Exchange has a loss of $ 430 million" is not a financial advice.
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