U.S. crypto exchange Coinbase has just released its first-quarter revenue report and the results were not as bad as expected.
On May 4, Coinbase Global reported a fifth consecutive quarter of losses. The results show that customers and investors have fallen out of favor with the company despite a recovery for crypto markets during the first quarter.
The company posted a loss of $79 million, which is much lower than the $430 million it lost in the same period last year. The net loss per share equated to $0.34.
The results have beaten analysts’ expectations which were losses of $316 million or $1.45 per share.
Coinbase Retail Volumes Down
The firm’s retail trading activity did not grow much in the first quarter despite a 50% gain for the crypto markets. Its total trading volume fell to $145 billion for the period from $309 billion a year ago. As a result, its total transaction revenue fell 63% to $375 million from more than $1 billion a year ago.
However, Coinbase does have some of the highest fees in the industry, so savvy traders may have sought alternatives.
Coinbase is mired in a regulatory quagmire with threats of SEC enforcement action and various lawsuits looming over it. Chief Legal Officer Paul Grewal said the legal fight with the SEC could be lengthy, but the firm expects to be fully operational in the meantime.
COIN Price Surges
COIN is currently down around 36% from its 2023 high of $84 on March 21 as regulatory pressure intensifies. By comparison, crypto markets have retreated just 7.5% from their 2023 peak in mid-April.