Coinbase stocks fall as first earnings since IPO miss forecast

Coinbase stock Cryptocurrency exchanges slipped a few hours later Thursday after reporting their first quarter results, but were slightly below estimates. This is the first report since last month’s IPO after the investment in Bitcoin began last year.


The results arrived when the largest crypto exchange in the United States faced questions about its rival crypto platform, expanded its product offerings, and faced questions about how to spend cash.

Coinbase, which makes most of its revenue from transaction fees on the platform, reported total revenue of $ 1.81 billion. The company earned $ 3.05 per share. Wall Street expected Coinbase to make $ 3.07 per share with $ 1.81 billion in revenue.

Coinbase said it has 56 million verified users, including over 8,000 institutions. Monthly trading users for the quarter were 6.1 million, in line with previous forecasts.

With trading volume of $ 335 billion, approximately $ 120 billion is made up of individual investors and $ 215 billion is made up of institutional investors. Other cryptocurrencies, Bitcoin and Ethereum, drove most of their volume.

Coinbase recorded operating expenses of $ 813 million during the quarter. Transaction costs due to increased transaction volumes, as well as increased account confirmation and payment processing fees, pushed up costs.

“Competition is intensifying”

Coinbase released financial information after Bitcoin and other cryptocurrencies Growing up at a maniac pace Over the past year, it has been backed by large investors and businesses, as well as adoption from digital assets such as NFTs and the joke cryptocurrency Dogecoin.

But competition and other concerns rest with the crypto industry.

“Competition is intensifying as new market entrants join the crypto economy every month,” Coinbase said in a letter to shareholders Thursday. “Our competitors not only support certain crypto assets that are experiencing large volumes of transactions and market capitalization increases that we do not currently support, but also new products and new products that we do not offer. We provide services. “

Coinbase announced at a conference call on earnings that it would allow Dogecoin to trade in about 6-8 weeks. But we see the future of “millions of different crypto assets” that need to meet security and compliance protocols.

When asked about how to keep pace at potentially cheaper rates elsewhere, management said it wasn’t focused on competing for rates. Its main focus was to meet demand, he said.

Coinbase also outlined scenarios in which other companies could be provided with technical assistance to process digital assets in finance and elsewhere. The Coinbase Cloud service states that it is “AWS for encryption.”

“Intrinsically unpredictable”

Coinbase’s fate depends on people’s interest in investing in Bitcoin and other cryptocurrencies. Exchanges warn that demand trends are “essentially unpredictable” due to volatility in crypto prices.

Throughout the year, Coinbase provided three forecasts for average monthly trading users, ranging from 4 to 7 million, depending on the value and interest of cryptocurrencies.

Meanwhile, regulators remain cautious about cryptocurrencies and could crack down on industries where fraud and theft remain a major concern. There are also concerns about the amount of energy that Bitcoin burns.

Rival crypto exchange Binance is under investigation Sources told Bloomberg, according to the Justice Department and the Internal Revenue Service. Bloomberg reported that officials specializing in money laundering and tax evasion provided people with insights into Binance’s business.

Meanwhile,, a blockchain software company backed by billionaire investor Peter Thiel, said: We plan to introduce a new cryptocurrency exchange this year..

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Coinbase stock

Coinbase inventory fell 0.2% to 264.50 after a few hours. Stock market today.. 49 shares Combined evaluation And 70 EPS evaluation.. Coinbase shares began trading on April 14, trading at $ 250 per share.

Bitcoin prices fell 10% from the previous day to $ 49,166. Micro Strategy (((MSTR) Announced that it would buy another $ 15 million in Bitcoin, but after falling during the day, it increased by 0.4% after business hours. Last month, MicroStrategy reported that it had over $ 5 billion in Bitcoin holdings as of April 28.

The· Grayscale Bitcoin Trust (((GBTC) It plummeted 11% during the day.

Coinbase’s results follow a year of widespread mainstream interest in Bitcoin.Digital payment giant PayPal (((PYPL) Allows users to buy and sell cryptocurrencies. master Card (((MA) This year, he said he would support cryptocurrency payments over the network. Tesla bought $ 1.5 billion in Bitcoin earlier this year.

The increase in investment in Bitcoin is also due to the growing interest in alternative currencies after the injection of coronavirus stimulation aid that caused the dollar to depreciate.

Mask says Bitcoin’s energy use is “insane”

But last week we showed how a whimsical interest in Bitcoin could be. on Wednesday, Tesla (((TSLA) On Twitter, CEO Elon Musk, one of Bitcoin’s most prominent supporters, said electric car makers would suspend the purchase of cars using Bitcoin.

Mask, who regularly tweets about Bitcoin and jokes about Dogecoin, quoted concerns that “the use of fossil fuels for Bitcoin mining and trading is increasing rapidly.”

He also said that Tesla will not sell Bitcoin and will use it for trading “as soon as (bitcoin) mining moves to more sustainable energy.” Musk said Tesla is considering other cryptocurrencies that use less than 1% of Bitcoin’s energy in transactions.

In a tweet on Thursday, Musk said Bitcoin’s energy use over the past few months was “insane.”

Digiconomist estimates that Bitcoin’s total annual carbon footprint is comparable to that of Singapore.

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