Coinbase falls short on revenue as trading volume drops 30 percent

US cryptocurrency exchange Coinbase on Tuesday reported a nearly 30 per cent decline in third-quarter trading volume on a sequential basis, fueled by lower volatility and a drop in the prices of bitcoin and other cryptocurrencies.

Trading volume fell from $462 billion (approximately Rs 34,44,572 crore) to $327 billion (approximately Rs 24,38,041 crore) in the second quarter. Of this, bitcoin accounts for 19 per cent, down from 24 per cent in the previous quarter.

After the bell rang, the company’s shares fell 13 per cent in trading.

Total revenue fell to $1.31 billion (about Rs 9,767 crore) from $2.23 billion (around Rs 16,626 crore) in the previous quarter, missing estimates of $1.57 billion (around Rs 11,705 crore).

Crypto exchanges have benefited from the mainstreaming of digital assets, with businesses around the world investing heavily in growing their crypto infrastructure.

However, calls for greater monitoring of crypto trading and products triggered a punitive slide in bitcoin prices earlier this year. As of 1:14 pm on November 11, the price of bitcoin in India is Rs. 52.77 lakhs.

Net income attributable to common shareholders of $405.34 million (approximately Rs.3,022 crore), or $1.62 (approximately Rs.120) per share. Analysts were expecting a profit of $1.57 (about Rs.117) per share, according to IBES data from Refinitiv.

© Thomson Reuters 2021

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