Coinbase's third-quarter earnings report revealed significant misses on both revenue and profit estimates, leading to a nearly 7% drop in share prices during after-hours trading. The exchange reported total revenue of $1.2 billion, falling short of the anticipated $1.26 billion, while earnings per share were $0.28 instead of the expected $0.45. The adjusted Ebitda of $449 million also did not meet the projected $469.2 million. Coinbase attributed its struggles to softer market conditions, noting a 27% decline in transaction fees driven by lowered trading volumes attributed to decreased crypto asset volatility. Despite these challenges, the company indicated growth in areas like staking and custody services, aiming to diversify its revenue streams. Year-to-date, Coinbases shares have seen a 22% increase amidst positive sentiment in the wider digital asset market, although ongoing regulatory uncertainties in the U.S. continue to pose challenges.

Source 🔗