Coinbase’s shares are down more than 17 percent in premarket trade on Wednesday, which is not surprising given that the company reported revenue of $1.17 billion in the first quarter, down 35 percent from the previous quarter and significantly below analyst expectations.
The leading cryptocurrency exchange posted a loss of $429.7 million, or $1.98 per share in the first quarter of 2022, compared to a net income of $387.7 million, or $3.05 per share, the previous year.
Coinbase’s transaction revenue was $1.01 billion, down 56 percent year-on-year, due to a 19 percent decrease in monthly transactional consumers to 9.2 million.
The company reported $256 billion in assets, a 7.9 percent decrease from expectations of $264.3 billion.
For the month of April, Coinbase recorded 8.9 million monthly active users and $74 billion in total trade volume. The business aims to keep possible 2022 adjusted EBITDA losses to around $500 million for the entire fiscal year.
According to CEO Brian Armstrong, the company’s disclosure did not indicate a risk of insolvency because custodial-held crypto assets may be considered property of a bankruptcy estate, according to Coinbase’s 10-Q filing.