Coinbase quarterly profit fell by 75%
Profit of the largest U.S. cryptocurrency exchange Coinbase in the third quarter of this year decreased by 74.7% compared to the previous quarter. This follows from the company's report to shareholders.
For the July-September period, the exchange posted earnings of $406 million, down from a record $1.6 billion in the second quarter. Even the listing of the Shiba Inu memcoin, which has set several value records in recent weeks, could not improve the results.
Despite the deep drop, the company's third-quarter earnings are still 500% higher than the same period in 2020.
The company's revenue for the three months was $1.23 billion, which was below analysts' forecasts of $1.61 billion.
The company's stock reacted to the news by falling nearly 11% in after-hours trading.
Coinbase said the exchange's short-term performance cannot be measured because an investment in the platform is a "long-term investment in the growth of the crypto economy."
We encourage investors to take this view, the report said.
The company also noted that trading volumes in the entire spot crypto market fell in the third quarter. This is evidenced, for example, by the fact that the exchange Robinhood had cryptocurrency profits down 78% during this period.