Coinbase's first-quarter results missed market expectations as cryptocurrency prices fell.
CNBC reported on May 7 that Coinbase's first-quarter trading revenue was $755.8 million, below analysts' estimate of $805.2 million. Subscription revenue was $583.5 million, missing an estimate of $619.3 million.
Bitcoin rose 12 percent in March but fell 22 percent for the full first quarter. Investors had already expected trading volumes to drop sharply after the steep fall in cryptocurrency prices, CNBC reported.
Coinbase, the largest cryptocurrency exchange in the United States, is seeking to diversify revenue through its subscription and services business, including stablecoin and staking income, to reduce its reliance on trading fees. Investors are watching whether Coinbase can generate revenue even when trading is weak and when its non-trading business will become large enough to offset volatility in trading fees, CNBC reported.
This week Coinbase announced it would cut about 700 jobs, or 14 percent of its total workforce. The layoffs reflect expectations that weak trading could continue into the second quarter, CNBC reported.
Chi-gyu Hwang
delight@d-today.co.kr