Coinbase’s stock rose significantly after its earnings report showed a significant recovery in Q1 compared to last year’s “crypto winter”. The post Coinbase Rises 8%+ After Beating Q1 Revenue Estimates appeared first on Tokenist.
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The shares of the cryptocurrency exchange Coinbase rose significantly in after-hours trading on Thursday, May 4th. The rise comes after the company published its earnings report for the first quarter of 2023 which showed that it managed to beat revenue estimates and significantly decrease its net loss.
Coinbase’s Q1 Revenue Up to $773 Million, Net Loss Down to $79 Million
This Thursday, the cryptocurrency exchange Coinbase published its earnings report for the first quarter of 2023. The company revealed its revenue for the period amounted to $773 million—significantly higher than the analysts’ estimate of $629 million, and than the Q4 revenue. Additionally, while the firm reported a net loss—for the fifth time in a row—it dropped sharply from last year’s number and came to $79 million.
However, the trading volume at the exchange remained roughly the same in the fourth quarter at $145 billion. The data highlights the impact the “crypto winter” had on the industry as the volume for the first quarter of 2022 stood above $300 billion—double the most recent number. Following the release of the report, Coinbase’s shares noticeably spiked in the after-hours and were up more than 8% after trading mostly sideways for most of Thursday.
The results are also in line with the recovery digital assets have been experiencing since the start of 2023. Major cryptocurrencies have gone through several rallies over the previous months and Bitcoin, for example, is up 73.73% year to date. Similarly, most digital assets-related stocks are significantly up with Coinbase itself being more than 46% in the green YTD.
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Coinbase Continues Global Expansion While Preparing for Regulatory Battle at Home
The first quarter of this year was not only marked by the rallies experienced by digital assets. The cryptocurrency industry has also been the target of intensified regulatory scrutiny with multiple companies finding themselves sued or investigated by US watchdogs. Additionally, several major firms have announced their departure from the American market.
Despite its reputation for compliance, Coinbase was also not spared and it had received a Wells notice from the SEC warning of a likely enforcement action. In response, the exchange has signaled its willingness to keep working with regulators and its determination to fight them if needed. It has also warned that it may, ultimately, join the exodus from the US and announced it would give greater focus to its global expansion.
The shift brought its first material fruit earlier this week with the launch of Coinbase’s Bermuda-based perpetual derivatives exchange. In its press release, the company revealed that the new entity will initially be open to institutional investors “based in eligible jurisdictions outside of the US”.
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The post Coinbase Rises 8%+ After Beating Q1 Revenue Estimates appeared first on Tokenist.