Coinbase Posts A Deficit For The Third Quarter As Volume Declines
Reuters, November 3 – Due to weaker demand for risky assets due to high inflation, increasing interest rates, and geopolitical unrest, US cryptocurrency exchange Coinbase Global Inc (COIN.O) posted a loss for the third quarter on Thursday. This reduced trading volumes for virtual currencies like bitcoin.
In comparison to a profit of $406.1 million, or $1.62 per diluted share, a year prior, Coinbase reported a net loss of $544.6 million, or $2.43 per diluted share, for the three months ended September 30.
To $365.9 million, transaction revenue decreased 64% from the prior year.
The business stated in a statement to shareholders that “stronger macroeconomic and crypto market headwinds, as well as trade volume going offshore, adversely reduced transaction revenue.”
At $576.4 million, net sales was down 53.3% from the previous year.