Coinbase Announces Budget Q3/22, Feed Income Fall 44% QoQ Results of crypto market decline, km unclear, professional traders fled It was revealed that this quarter is still facing a loss. but has improved from the previous quarter with a loss of 50% as a result of reducing costs – a reduction in the number of staff
Coinbase released a statement released on November 3rd. 3Q22 transaction fee revenue fell to $365 million, compared to $655 million in Q2, a 44% decrease.
Coinbase has cited a harsh macroeconomic environment. And that has a bad effect on trading in the cryptocurrency market. This was reflected by a decrease in the total capitalization of the digital currency market by more than 30% compared to its daily average. Trading volumes also decreased as US investors moved their money to trade elsewhere. Due to the lack of clarity of regulations in the country
In addition, it was found that retail investor behavior Coinbase, Coinbase’s breadbasket, saw less trading behavior in the quarter. but changed to a more long-term holding In addition, professional traders have turned to other crypto-platforms. with greater variety and complexity of products amid market stagnation That is why the company’s trading fees are being reduced.
Although the numbers are poor, Coinbase CEO and co-founder Brian Armstrong seems to see bull market hopes. During the Q3 earnings release, he said the legal environment could be The “big unlock” that will grow the crypto industry and bring the price back up.
Alesia Haas, Coinbase’s Chief Financial Officer, was asked if that Will the company be able to make a profit in the last quarter of this year? which does not guarantee that it will make a profit along with explaining that the issue of profit is not the first priority at the moment. Instead, it will look to invest for continued growth in the market cycle. At the same time, he will try to minimize losses.
“While we were in a bull market we were able to profit from that point. But when the market is in a downturn, we need to keep our losses as low as possible.”
Coinbase seems to have achieved this goal. The latest earnings report shows that the company can reduce qoq operating costs reached 38% through staff cuts and other measures.
Overall, Coinbase posted Q3 revenue of $576 million, down 28% from Q2, and a net loss of $545 million this quarter, though it still posted a loss. But it was a lower loss than the previous quarter. Losses fell more than 50% to $545 million from a loss of more than $1 billion last quarter.
The global crypto exchange has stated that the decrease in revenue was offset by an increase in subscriptions and service revenue, which was driven by services at stake and catches. including interest income which increased by 43% compared to the previous quarter.
However, shares of Coinbase (COIN) fell more than 8% as the company’s revenue for the quarter fell short of Bloomberg’s estimate of $649 million.
source: cointelegraph coinbase
*Crypto currencies and digital tokens are high risk. You may lose your entire investment. Study and invest appropriately with an acceptable level of risk.
