Cryptocurrency exchange, Coinbase, reported a Q3 loss of $2.2 million, surpassing Wall Street predictions for the third time this year.
The firm’s shares fell during after-hours trading on Thursday despite better-than-expected financial results. On a per-share basis, Coinbase reported a loss of $0.01 on $674 million in revenue, whereas analysts had predicted a loss of $0.70 on $670 million in revenue for the quarter.
In comparison, the San Francisco-based firm lost $545 million during the same period last year, amid falling cryptocurrency prices and shrinking transaction revenue.
During an earnings call, Coinbase CEO Brian Armstrong compared the current crypto climate to the early years of the internet. He stated, “The on-chain companies of today will be the tech giants of tomorrow.”
Despite reporting $105 million in transaction revenue for October, Coinbase urged shareholders not to make assumptions based on these results.
In Q3, transaction revenue was reported at $289 million, a consecutive decrease from $327 million in the preceding three months. Coinbase’s Vice President of Investor Relations, Anil Gupta, noted that this coincided with the crypto market’s lowest volatility since 2017.
Meanwhile, anticipation for a spot Bitcoin ETF on Wall Street and Coinbase’s role as custodian in several Bitcoin ETF applications may potentially benefit the company.
At market close on Thursday, Coinbase’s stock was priced at $84, a nearly 150% increase since the start of the year. Over the past week, the stock experienced nearly a 10% rise.
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