Shares of Coinbase had already fallen more than 16% to close at $73 throughout the day, and after the results were released, after-hours trading saw the price drop further to $61 on the day. time of writing this article. Shares of Coinbase have been on a steady decline since November 2021, when it nearly hit the high of $380 from its initial public offering (IPO) in April last year.
The reasons for the sharp fall of Coinbase are mainly related to the fall of Bitcoin, which has lost 18% of its value in the last seven days and ranges between $29,000 and $31,000.
In addition to the negative impact of the Bitcoin crash, Coinbase shares also suffered last night from the disappointing results of the first quarter of 2022.
Revenue was also well below consensus, at $1.17 billion, versus $1.5 billion forecast. This represents a year-on-year drop in revenue of 27%.
But Coinbase doesn’t seem to be worried about its long-term prospects. The company reiterated an argument that it had previously put forward. He reminded shareholders that his shares should be considered a long-term investment due to the volatile nature of cryptocurrency price movements.
“We believe these market conditions are not permanent and we remain focused on the long term,” the company wrote in a letter to shareholders accompanying its earnings release. He also said that he was focused on the next generation of cryptocurrency opportunities beyond simple trading:
“As we continue to invest and improve our core investment platform, the age of cryptocurrency application is upon us, led by NFTs and decentralized finance, and we are increasingly focusing our efforts on these market opportunities.”
Source: Ambito
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