• Coinbase missed on analysts’ estimates for first quarter income
  • The alternate mentioned that broader market situations are in charge, however it isn’t afraid of a bear market

Cryptocurrency alternate Coinbase reported $1.17 billion in income through the first quarter, lacking analyst estimates. Shares plummeted 12% in after-hours buying and selling.  

“It’s price simply addressing the elephant within the room, which is that after all the broader markets are down,” Coinbase CEO Brian Armstrong mentioned through the firm’s earnings name Tuesday. 

“We are likely to do our greatest work in downturns, so, sarcastically…I’ve by no means been extra bullish on the place we’re as an organization.” 

Coinbase’s month-to-month energetic customers dropped to 9.2 million, coming in shy of the Road’s consensus of 9.5 million. 

First quarter complete buying and selling quantity was $309 billion, a 44% lower from the fourth quarter of 2021, which the alternate attributed to market situations. The corporate mentioned it’s anticipating an additional decline in transactions within the second quarter, however its outlook for 2022 is “largely unchanged,” in its shareholder letter Tuesday.

Of Coinbase’s first quarter income, $1 billion got here from the alternate’s minimize of buying and selling charges, a 56% decline from the fourth quarter. The alternate has mentioned it desires to diversify from buying and selling price income, transferring into futures and derivatives merchandise, prime brokerage choices, and, most just lately, a subscription mannequin that comes with zero-fee transactions.

Coinbase collected $152 million in income from subscription and providers through the first quarter. 

“We imagine with our steadiness sheet sources, we’re properly capitalized aiding our operations, and as Brian mentioned, proceed to make our concentrate on constructing nice merchandise experiences, increase our consumer base and preparing for the return of the market,” Coinbase Chief Monetary Officer Alesia Haas mentioned on the decision. 

The primary quarter confirmed a continuation of a pattern of decrease crypto costs and elevated volatility that started within the fourth quarter of 2021, Armstrong mentioned, one thing the corporate has addressed partially. 

“You may anticipate volatility in our financials, given the value cycles of the cryptocurrency business,” Coinbase’s 2021 prospectus reads. “This doesn’t faze us, as a result of we’ve all the time taken a long-term perspective on crypto adoption.”

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  • Blockworks

    Senior Reporter

    Casey Wagner is a New York-based enterprise journalist masking regulation, laws, digital asset funding corporations, market construction, central banks and governments, and CBDCs. Previous to becoming a member of Blockworks, she reported on markets at Bloomberg Information. She graduated from the College of Virginia with a level in Media Research.

    Contact Casey by way of electronic mail at [email protected]

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