The stock of Coinbase Global (COIN) is sliding lower after the largest U.S. cryptocurrency exchange reported mixed first-quarter financial results.
The company announced earnings per share (EPS) of $1.94 U.S., which was slightly ahead of the $1.93 U.S. forecast on Wall Street.
Revenue in the year’s first three months totaled $2 billion U.S., up 24% from a year ago but below the $2.1 billion U.S. consensus forecast of analysts.
The latest print was issued on the same day that Coinbase announced a deal to acquire leading crypto options exchange Deribit for $2.9 billion U.S.
Coinbase’s stock rose 5% heading into its earnings on news of the Deribit purchase.
With cryptocurrency prices and the stock market seesawing between gains and losses, many investors have moved to the sidelines and are sitting in cash.
As a result, trading volumes on Coinbase’s crypto platform have slumped.
Transaction revenue dropped 19% quarter-over-quarter to $1.3 billion U.S., while subscription and services revenue grew 9% to $698 million U.S. thanks to stablecoin revenue.
Looking ahead, Coinbase guided for lower current-quarter subscription and services revenue of between $600 million U.S. and $680 million U.S.
Management noted that the total market capitalization of cryptocurrencies worldwide fell 19% to $2.7 trillion U.S. in this year’s first quarter from the fourth quarter of 2024.
The stock of Coinbase Global has declined 20% this year to trade at $206.50 U.S. per share.
