Coinbase shares tumble as sluggish crypto trading leads to poor third-quarter results | Wilnesh News

Coin library Wednesday report Third-quarter results were weaker than expected due to sluggish trading in the cryptocurrency market.

The stock fell more than 4% in after-hours trading.

Here’s how the company’s third-quarter report compared with Wall Street expectations, according to a survey of analysts by London Stock Exchange Group (LSEG):

• Earnings per share: 28 cents Expected 41 cents
• income: $1.21 billion vs. $1.26 billion expected

Coinbase, which operates the largest cryptocurrency buying and selling marketplace in the United States, reported net profit of $75.5 million, or 28 cents per share, compared with a loss of $2.3 million, or 1 cent per share, a year earlier.

The latest quarter’s net profit included a $121 million pre-tax loss on Coinbase’s cryptocurrency portfolio, the vast majority of which was unrealized because cryptocurrency prices were lower on September 30 than on June 30.

In its core business, retail trading revenue increased 98% from the previous year to $483.3 million, while institutional revenue achieved $55.3 million in the quarter, a 292% increase from the same period last year. Total transaction revenue was US$572.5 million, an increase of 98% year over year.

Revenue from Coinbase subscriptions and services, which include stablecoins, staking and leverage for Prime traders, etc., fell slightly by 7% to $556.1 million.

Cryptocurrency markets have been in the doldrums for much of this year, hovering in a narrow range between $55,000 and $70,000. Bitcoin lacks any significant catalysts and is experiencing low volatility as investors closely follow the U.S. presidential race and largely remain on the sidelines. Coinbase has been an active lobbyist for the cryptocurrency industry this year, spending millions of dollars supporting pro-crypto political action committees.

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