Coinbase reported earnings Tuesday.
Michael Nagle/Bloomberg
Coinbase reported a net loss of $430 million, and adjusted profit of $20 million, on revenue of $1.165 billion for the first quarter of 2022.
Coinbase Global’s shares fell 15% in after-hours trading on Tuesday, extending a 12.6% decline for the day ahead of the earnings report.
Coinbase’s shares are down 83% from an all-time high of $368.90 last November, when Bitcoin’s price also peaked at $67,802.30 per coin.
Coinbase was expected to report a profit of 86 cents on sales on sales of $1.476 billion. First-quarter revenue was down 27% from the same quarter last year.
Bitcoin, which Coinbase enables investors to buy and sell, has dropped 32% so far this year and briefly fell below $30,000.
In a note published on May 4, Mizuho analyst Dan Dolev argued that his analysis of Coinbase’s April and May trading volumes pointed to revenue that would come in 25% to 30% lower than expectations. “Crypto winter has come early, and temperatures are dropping fast,“ he wrote.
Coinbase stock fell 12.6% to close at $72.99 on Tuesday. Its shares are off 71% so far this year, while the S&P 500 has fallen 16%, and the Dow Jones Industrial Average has declined 11.5%.
Write to Ben Levisohn at [email protected]
