Coinbase shares to open lower after 75% drop in net income in Q3

Coinbase (COIN) shares have taken a hit after the firm posted a 75% decrease in net income during the third quarter.

COIN closed Nov. 9 with a 0.98% gain at a price of $357.39, however the release of the leading U.S. exchange’s Q3 report after market close has coincided with a dip of around 13.10% (at time of this writing) in after-hours trading.

Coinbase posted revenue of $1.235 billion in Q3 falling well below analyst estimates according to FactSet of $1.614 billion. The firm’s profits totaled $406 million, marking a 74.7% decrease in profit compared to the previous quarter, although it was above analyst expectations of $380M. Coinbase also reported earnings of $1.62 per share, which came in 10% short of the FactSet consensus estimate.

pic.twitter.com/VMcdPKkrVA

— Shibetoshi Nakamoto (@BillyM2k) November 9, 2021

Despite the underwhelming performance in Q3, Coinbase said in the report that it had been a “strong quarter” for the firm, pointing toward deeper investor engagement on the platform and the development of new products such as its upcoming NFT marketplace. The firm also emphasized that it is focused on the long term as opposed to quarter-to-quarter:

“Coinbase is not a quarter-to-quarter investment, but rather a long-term investment in the growth of the crypto economy and our ability to serve users through our products and services. We encourage our investors to take this point of view.”

It appears that the frosty relationship between Coinbase and the U.S. Securities and Exchange Commission (SEC) is beginning to thaw.

CEO Brian Armstrong first highlighted the firm’s issues with the SEC in September when he revealed that the enforcement body had threatened to sue Coinbase if it launched its USD Coin (USDC) lending program. Armstrong followed those comments up later that month by stating that the SEC was the only government branch that was unwilling to meet with the firm.

However Armstrong said on the Q3 earnings call today that he’d had a “very productive” meeting with SEC chairman Gary Gensley last week.

Coinbase CEO @brian_armstrong says on Q3 call that he met with SEC chairman Gary Gensler last week .. called it “very productive.”

— Kate Rooney (@Kr00ney) November 9, 2021

The firm posted a 41% growth in subscription services revenue of $145 million compared to Q2 via its such avenues as its ETH 2.0 staking program, custodial fee revenues and token rewards. The firm also noted that its 7.4 million Monthly Transacting Users (MTUs) are beginning to “engage beyond crypto’s first use case.”

“Approximately 28% of our retail MTUs both invested and engaged with at least one other product in Q3. Further, 49% of our retail MTUs engaged with non-investing products such as Staking, Earn, and Coinbase Card, including 2.8 million users who were earning yield on their crypto assets.”

Trading volume on the platform tallied at $327 billion in Q3, down 29% compared to Q2, with institutional investors representing the lions’ share of trading with $234 billion, while retail traders accounted for $93 billion.

Ether (ETH) outperformed Bitcoin (BTC) in terms of trading volume for the second quarter in a row, with the former totaling 22% while the latter equated to 19% of total volume. “Other crypto assets” accounted for 59% of trading volume, which was up 18% compared to Q2.

TECH NEWS RELATED

Hero MotoCorp expands operations in Argentina

Representative image Two-wheeler market leader Hero MotoCorp on Friday announced the expansion of operations in Argentina with the opening of its flagship dealership in Buenos Aires in partnership with Gilera Motors Argentina. Gilera Motors Argentina (GMA) will make new investments to rapidly expand all business operations for Hero MotoCorp’s ...

View more: Hero MotoCorp expands operations in Argentina

KEC International shares jump on new orders worth Rs 1,065 crore

Representative image Infrastructure engineering, procurement and construction (EPC) major KEC International on Friday said it has bagged new orders worth Rs 1,065 crore across various businesses. Its Transmission & Distribution (T&D) business has secured orders for projects in India, the Middle East, Africa, and Americas. While the railways business ...

View more: KEC International shares jump on new orders worth Rs 1,065 crore

KEC International bags orders worth Rs 1,065 crore

Representative image Infrastructure engineering, procurement and construction (EPC) major KEC International on Friday said it has bagged new orders worth Rs 1,065 crore across various businesses. Its Transmission & Distribution (T&D) business has secured orders for projects in India, the Middle East, Africa, and Americas. While the railways business ...

View more: KEC International bags orders worth Rs 1,065 crore

AirAsia India introduces in-flight safety manual for visually impaired guests

On International Day of Persons with Disabilities, AirAsia India on Friday introduced an in-flight safety manual in braille in collaboration with the Helen Keller Institute for the Deaf and Deafblind for the visually impaired passengers. Also, wheelchair assistance can now be pre-booked online on its website and app while ...

View more: AirAsia India introduces in-flight safety manual for visually impaired guests

Renowned Poker Star Doug Polk Becomes Coinflex’s First Global Brand Ambassador

press release PRESS RELEASE. On the back of a big year for CoinFLEX, the crypto derivatives exchange that now powers the Bitcoin.com exchange, has just launched its brand ambassador initiative to expand its global community. CoinFLEX’s first brand ambassador is world-renowned poker star, Doug Polk. Doug Polk is one ...

View more: Renowned Poker Star Doug Polk Becomes Coinflex’s First Global Brand Ambassador

Rumble to Go Public Next Year in a SPAC Deal

Rumble, an online video platform, is set to go public next year in a special purpose acquisition companies (SPAC) deal, the company has announced.  The Canadian company is planning to merge with a blank-check firm called CF Acquisition Corp VI. The merged company will still be called Rumble. The ...

View more: Rumble to Go Public Next Year in a SPAC Deal

Adidas Steps Into the Metaverse by Partnering With NFT Projects Bored Ape Yacht Club, Punks Comic

The German multinational corporation that crafts athletic shoes, sportswear, and accessories, Adidas AG is teaming up with the non-fungible token (NFT) brands the Bored Ape Yacht Club, and the comic series Punks Comic. Adidas revealed last week that the company partnered with Coinbase and believes the metaverse is one ...

View more: Adidas Steps Into the Metaverse by Partnering With NFT Projects Bored Ape Yacht Club, Punks Comic

Weibo set to raise US$193 million from Hong Kong offer, much lower than the US$547 million it had hoped for

Weibo, China’s Twitter, has priced its Hong Kong shares at HK$272.80, joining a number of mainland Chinese companies rushing to list closer to home. The company, 44.4 per cent owned by Sina Corp and 29.6 per cent by Alibaba Group Holding, will start trading on Wednesday under the stock ...

View more: Weibo set to raise US$193 million from Hong Kong offer, much lower than the US$547 million it had hoped for

This megaspider with fangs is nightmare fuel that’ll haunt your dreams

Even if India clears private cryptocurrencies, it may not allow trading on foreign platforms

Hong Kong eyes bigger role, market as it helps Hainan with free-trade port development

Meta Relaxes Facebook's Cryptocurrency Ad Policy — Says Crypto Continues to 'Mature and Stabilize'

South Korea Delays Plans to Tax Crypto to 2023

Debt-laden developer China Aoyuan tumbles after failing to meet US$651 million of payment demands triggered by ratings downgrades

Tech stocks from Meituan to Alibaba lead losses in Hong Kong as Chinese ride-hailing giant Didi prepares for US delisting

'Wolf of Wall Street' Jordan Belfort Warns About Investing in Dogecoin and Shiba Inu Cryptocurrencies

Supermarkets across the country are facing shortages of 2 crucial grocery items

150,000 images combined to make this mind-blowing 300-megapixel photo of the Sun

Michael Saylor Calls Bitcoin the World’s Reserve Asset but Not so Good for Buying a Cup of Coffee

Riot Blockchain Raises 2022 Hashrate Guidance for Second Time in a Month

OTHER TECH NEWS

;