Coinbase stock down 13% after a mixed Q3 earnings report
Coinbase stock dipped on extended trading on Tuesday after the release of the company’s third-quarter earnings report.
Data from Nasdaq shows that Coinbase has dropped by 13.24% as the pre-market dumped stock to $310.58 in hours.
In July Coinbase dropped below $221 but later improved in the previous months closing at $357.39 on Tuesday.
The last 24 hours have been predominantly bearish for the stock. The pre-market price was at $347.18 (-13.85 (3.01%) down) at the time of writing.
Coinbase unable to attain the mark
On Tuesday, Coinbase reported Q3 2021 earnings of 406 million which is a drop of 75% from its Q2 earnings that posted a net income of $1.6 billion.
However, this is still a 500% increase over Q3 2020 for America’s largest crypto exchange, which was introduced as a publicly-traded company on Nasdaq in April this year.
In its shareholder letter the exchange said:
“As our year-to-date results have clearly demonstrated, our business is volatile. 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.”
In September Coinbase did away with its plan to launch Lend, a product that is designed to deliver high returns interest on USDC stablecoin holdings.
The scrapping of this launching program was after the U.S. Securities and Exchange Commission (SEC) said that the product can threaten to take Coinbase to court as unregistered securities.
In the course of the last quarter, Coinbase saw the number of users transacting monthly plummet to 7.4 million from 8.8 million. This was also experienced in Q2.
Although popular digital assets like Dogecoin and Shiba-Inu plummeted to $327 billion from $462 billion in the previous quarter, Coinbase’s last quarter is quite desirable.