Coinbase Crypto Exchange Posts Smaller Quarterly Loss After Costs Cuts

The company has benefited from its deal for One River Digital Asset Management to ramp up product offerings in subscription and services revenue.

By Reuters | Updated: 5 May 2023 11:26 IST

Coinbase Crypto Exchange Posts Smaller Quarterly Loss After Costs Cuts

Photo Credit: Reuters

Coinbase posted a loss of 34 cents a share

Highlights

Earlier this year, the company said it will cut 950 more jobs
The company lowered operating expenses by 24 percent
Coinbase shares have risen nearly 40 percent this year

Cryptocurrency exchange Coinbase Global posted a smaller-than-feared loss in the first quarter, benefiting from cost cuts and diversification of revenue sources, sending its shares up 7 percent in extended trading on Thursday.

The company has benefited from its deal for One River Digital Asset Management to ramp up product offerings in subscription and services revenue, while it also launched wallet-as-a-service and other products to scale blockchain.

"We're also seeing the benefits of increased cost efficiencies, and we've taken deep lessons from growing too quickly and believe that we are going to be prudent in our spend going forward," Chief Financial Officer Alesia Haas said.

Israel Seized Binance Accounts to 'Thwart' Islamic State, Claims Document

Coinbase posted a loss of 34 cents a share, while analysts estimated a loss of $1.35 (roughly Rs. 110) as investors tiptoe back to the speculative asset class to hedge against elevated market risks after a brutal selloff last year.

But the trend is yet to power gains for the cryptocurrency exchange as trading volumes more than halved to $145 million (roughly Rs. 1,200 crore) while retail trading volumes, which had been instrumental in making Coinbase a household name in 2021, sank 72 percent.

Earlier this year, the company said it will cut 950 more jobs in its the third round of layoffs since last year.

Coinbase Halts Fiat Loan Borrowing Service Against Bitcoin Holdings

Haas said the improved cost-structure will help the company hit its 2023 goal to improve core profit year-over-year.

The company lowered operating expenses by 24 percent from last quarter and reported $607 million (roughly Rs. 5,000 crore) in expenses, much lower than its prior range of between $625 million (roughly Rs. 5,100 crore) and $675 million (roughly Rs. 5,500 crore).

"Everyone was expecting disastrous results, and it does not look to be a disaster for Coinbase at all," said Dave Weisberger, CEO of CoinRoutes, an algorithmic-trading platform for the digital asset industry.

Crypto Market Fluctuates After the US Announces Another Interest Rate Hike

Coinbase shares, which lost 85 percent of their value in 2022, have risen nearly 40 percent this year as of Thursday's close as cryptocurrencies gain some ground.

OnePlus recently launched its first tablet in India, the OnePlus Pad, which is only sold in a Halo Green colour option. With this tablet, OnePlus has stepped into a new territory that's dominated by Apple's iPad. We discuss this and more on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.