Coinbase shares surged after a report on the loss reduction
The cryptocurrency exchange has reported a fifth consecutive quarter of losses, although the first three months of this year were better than expected
Coinbase, the second-largest crypto exchange, reported a smaller-than-expected loss for the first quarter of 2023, helped by rising cryptocurrency prices. The company's loss dropped to $79 million from $430 million in the previous period.
Shares of Coinbase (COIN) were up about 8% in over-the-counter trading. The company's stock has fallen nearly 90% since it debuted in April 2021, but is up about 40% this year.
Revenue fell about 34% to $772.5 million, though it was up from the fourth quarter when the entire crypto market was in a severe slump amid a series of scandals and bankruptcies of major players.
For the current quarter, Coinbase expects revenue from subscriptions and value-added services to decline from the first quarter, largely due to a strong decline in the capitalization of the USD Coin Stablecoin (USDC), which is issued by Circle in conjunction with the exchange. According to the letter, USDC's interest income was $199 million.
Coinbase's historical share price high was $357.39 in November 2021, and reaching that mark coincided with the peak price of Bitcoin and other cryptocurrencies. Earlier this week, a group of investors sued the exchange's top management, accusing its executives of selling their own shares before falling based on insider information.
At the same time as Coinbase, Block of Twitter founder Jack Dorsey released its quarterly report. Gross profit was $1.71 billion and total revenue was almost $5 billion, including $2.2 billion in bitcoin sales in the first quarter, a 25% increase from last year, with a gross profit of $50 million from the sale of the cryptocurrency.
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