The largest cryptocurrency exchange in the USA, Coinbase, announced a net loss of $ 430 million in the first quarter of 2022.
Coinbase’s shareholder letter revealed that the firm generated $1.16 billion in net income during the period. Wall Street’s revenue estimate was just under $1.5 billion.
The exchange’s net income in the fourth quarter of 2021 was $2.49 billion. The following statements were included in the shareholder letter:
“The first quarter of 2022 continued the trend of volatility as well as lower crypto-asset prices that started in late 2021. These market conditions directly affected our first quarter results.
However, we entered these market conditions with foresight and preparedness. We are as excited as ever about the future of crypto”
Transaction volumes fell to $309 billion in the first quarter of the year, compared to $547 billion in the fourth quarter of 2021.
In a shareholder letter, Coinbase said, “We believe these market conditions are not permanent and we remain focused on the long-term.” The firm emphasized that they will continue to invest in wallet and NFT plans in the future.
Coinbase’s shares also continue to decline. $COIN price slumped to $62.82 after closing the Tuesday trading session down 12.6% to $72.99.
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