After the close of trading on the US stock exchanges, investors were given an insight into the business development of the world’s second largest crypto exchange Coinbase. In the fourth quarter, the EPS of the trading platform for Bitcoin, Ethereum and Co. was -2.46 US dollars. Analysts had forecast a loss of -$2.524 per share after Coinbase posted earnings per share of $3.32 in the year-ago period. The US company reported a net loss of $557 million for the fourth quarter as a whole, after a surplus of $840 million a year earlier.
Coinbase’s fourth-quarter revenue collapsed to $605 million on a slump in transaction volume, down from $2.5 billion in the same quarter last year. Analysts had estimated sales for the period at $587.8 million.
In terms of revenue, the crypto exchange had $3.149 billion on its books for the full fiscal year 2022. With this, Coinbase slightly beat analysts’ forecasts of $3.14 billion in revenue. In the 2021 fiscal year, the crypto trading platform had still turned over 7.355 billion US dollars. Full-year EPS was -$11.83, down from earnings per share of $14.50 in the prior-year period.
The crypto world is struggling with high volatility. Because of high inflation, rising interest rates, and geopolitical tensions, many investors have shed risky assets, which include cryptocurrencies. In addition, the crypto exchange FTX filed for bankruptcy protection in November after customers withdrew en masse. The collapse of FTX shook the entire industry.
In pre-market trading on the US stock exchange NASDAQ, Coinbase shares are temporarily 1.80 percent lower at $ 61.95.
Editorial office finanzen.net / Reuters
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