Crypto exchange Coinbase posts smaller loss on cost cuts, more revenue sources
Cryptocurrency exchange Coinbase Global Inc posted a smaller-than-feared loss in the first quarter, benefiting from cost cuts and diversification of revenue sources, sending its shares up 7% in extended trading on Thursday.
The company has benefited from its deal for One River Digital Asset Management to ramp up product offerings in subscription and services revenue, while it also launched wallet-as-a-service and other products to scale blockchain.
“We’re also seeing the benefits of increased cost efficiencies, and we’ve taken deep lessons from growing too quickly and believe that we are going to be prudent in our spend going forward,” Chief Financial Officer Alesia Haas said.
Coinbase posted a loss of 34 cents a share, while analysts estimated a loss of $1.35 as investors tiptoe back to the speculative asset class to hedge against elevated market risks after a brutal selloff last year.
But the trend is yet to power gains for the cryptocurrency exchange as trading volumes more than halved to $145 million while retail trading volumes, which had been instrumental in making Coinbase a household name in 2021, sank 72%.
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