Crypto exchange Coinbase posts smaller first-quarter loss

CRYPTOCURRENCY exchange Coinbase Global posted a smaller-than-expected first-quarter loss on Thursday (May 4) after investors tiptoed back to the strained asset class to hedge their bets against a worsening economic backdrop.

The San Francisco-based company’s net loss narrowed to US$78.9 million in the three months that ended March, from US$429.7 million in the year-ago quarter.

On a per share basis, the company reported a loss of 34 US cents a share, while analysts estimated a loss of US$1.35 a share, sending its shares up nearly 7 per cent in extended trading.

Coinbase’s shares, which lost 85 per cent in 2022, rose nearly 40 per cent this year up to Thursday’s close as cryptocurrencies gain some ground.

After a brutal selloff in 2022, investors slowly return to the speculative asset class to hedge against elevated market risks from worsening recession concerns and a crisis of confidence in the banking sector.

“This is the fourth crypto cycle that Coinbase has been through and we’ve emerged stronger after each one,” chief executive officer Brian Armstrong said.

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Still trading volumes more than halved to US$145 million in a signal that the reversal is yet to materialise into gains for the cryptocurrency exchange. REUTERS