Coinbase’s Earnings Fall Short as Cryptocurrency Trading Declines

Shares of Coinbase Global (COIN), the well-known cryptocurrency trading service, have decreased by 3% following the release of the company’s financial outcomes that did not meet the anticipations set by Wall Street analysts.

The announced earnings per share (EPS) for the third quarter by Coinbase was $0.28 U.S., falling short of the forecasted $0.45 U.S. figure by analysts.

During the third quarter spanning July to September, Coinbase amassed revenue of $1.21 billion U.S., which did not reach the anticipated $1.26 billion U.S. proposed by Wall Street projections.

Coinbase’s administration has attributed the lackluster performance to a decrease in crypto trading activity during the summer period, which coincided with a reduction in Bitcoin’s (BTC) value.

As the leading cryptocurrency exchange in the United States, Coinbase is a go-to platform for individual investors and traders looking to deal in cryptocurrencies.

The financial health and share value of Coinbase are strongly influenced by the market values of cryptocurrencies like Bitcoin and Ethereum (ETH), given the nature of the business.

Despite the overall downtrend, Coinbase’s revenue from the retail trading sector showed a year-over-year growth of 98%, reaching $483.3 million U.S. in the quarter.

The company’s institutional trading revenue saw a substantial increase of 292% from the same quarter in the previous year, totaling $55.3 million U.S. The overall transaction revenue stood at $572.5 million U.S., reflecting a 98% rise.

Looking ahead, the company’s leadership is optimistic about the ongoing fourth quarter, especially as Bitcoin surges in value, drawing near its historic peak of nearly $74,000 U.S.

Concurrent with the affirmation of the latest financial metrics, Coinbase Global disclosed their plan to initiate a stock repurchase program valued at $1 billion U.S.

Before the data release on Oct. 31, Coinbase’s stock had experienced a 35% surge this year, leading to a trading price of $211.74 U.S. per share.