Coinbase stock plunges as subdued crypto trading leads to third-quarter miss

Coinbase It reported weaker-than-expected third-quarter results on Wednesday, weighed down by subdued trading in the cryptocurrency market.

The stock fell more than 4% in extended trading.

According to an LSEG analyst survey, the company reported third-quarter results compared to Wall Street expectations:

• Earnings per share: 28 cents vs. 41 cents expected
• Revenue: $1.21 billion versus expected $1.26 billion

Coinbase, which operates the largest U.S. marketplace for buying and selling cryptocurrencies, reported net income of $75.5 million, or 28 cents per share, compared with a loss of $2.3 million, or 1 cent per share share in the previous year.

Last quarter's net income included $121 million in pre-tax losses from Coinbase's crypto investment portfolio, the vast majority of which was unrealized as crypto prices were lower on September 30 compared to June 30.

In the core business, retail revenue increased 98% year-over-year to $483.3 million, while institutional revenue brought in $55.3 million in the quarter, up 292% from the year-ago period. Total transaction revenue was $572.5 million, up 98% year-over-year.

Revenue from Coinbase's subscriptions and services – which include stablecoins, staking and leverage for prime traders – saw a more modest 7% decline to $556.1 million.

The cryptocurrency market has been in a slight lull for much of this year, hovering in a narrow range between $55,000 and $70,000. Bitcoin lacked significant catalysts and was low in volatility as investors watched and largely waited for the US presidential race. Coinbase has been an active lobbyist for the crypto industry this year, spending millions to support cryptocurrency political action committees.

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