The leading crypto exchange Coinbase Global published its first-quarter revenue report which estimates numbers were a contrast with analyst expectations. In the first quarter, overall trading volumes dropped 44% in comparison to the fourth quarter of 2021.
In Q1, 2022, Coinbase’s revenue was $1.17 billion, which is far below analysts’ average estimated value of $1.5 billion. The report also revealed a quarterly net loss of $430 million, which is haunting for the company’s future as in Q4 for 2021 it has gained $840 million profit.
The total trading volume on Coinbase in Q1 was $309 billion which missed their estimated figure of $331.2 billion. These numbers show almost half of the trading volume generated in Q4, 2022 with $547 billion.
Monthly transacting users (MTUs) were reported at 9.2 million, compared with 11.4 million in the Q4 and analyst estimates of 9.9 million.
In a report, Coinbase stated that the company is expecting lower MTUs and trading volume in Q2, 2022 in comparison to Q1, 2022. The company also envisages “similar to modestly lower” subscription and services revenue in Q2, 2022.
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Apart from this, Coinbase also revealed a filing for a shelf registration with the SEC that stated “while we have no immediate plans to offer securities at this time, by filing the shelf registration statement now, we will be able to offer and sell securities in the future should we choose to do so.”
Coinbase submitted the shelf filing to issue securities in a faster time period, more likely in a few days that can enable power to capitalize on volatility or “short windows of favorable market conditions should we choose to do so.”
