Shares of the bitcoin exchange Coinbase fell 5.8% in after-hours trading after the publication of the fourth-quarter 2021 results. The market reacted to management’s guidance on user activity in January–March.
UPDATE: Q4 and FY’21 financial results are in
Check out our letter to shareholders here 👉 https://t.co/73YJhlycei pic.twitter.com/z55IKvEHf5— Coinbase (@coinbase) February 24, 2022
Earnings per share were $3.32 versus consensus estimates of $1.85, revenue of $2.5 billion versus $1.94 billion, according to CNBC.
Since the start of the year, Coinbase shares have fallen about 28.85%, while Bitcoin has slumped 16.3% over this period.
In a letter to shareholders, the firm warned that the platform’s total trading volume and the number of MTU (monthly active retail users) in January–March would be below the previous quarter.
The company cited a decline in volatility and in the market capitalisation of cryptocurrencies as reasons. The latter was attributed to the geopolitical environment and expectations for an increase in the ФРС key rate. Such an environment will also weigh on the revenue from subscriptions and services.
In Q4, MTU jumped from 7.4 million to 11.4 million. The number of verified users reached 89 million.
Looking ahead, Coinbase expects heightened uncertainty in 2022: \”global macroeconomic headwinds\” in addition to volatile crypto-asset prices, rising interest rates and inflation.
The leadership expects further growth in cryptocurrency adoption and new business opportunities.
CEO Brian Armstrong, at an analyst conference, rejected the narrative of an impending \”crypto winter.\” He pointed to a shift in the way digital assets are used, which will \”temper the cycles seen in the market.\”
CFO Alesia Haas reminded of the upcoming launch of NFT marketplace, which should diversify the company’s revenue streams.
Earlier, Coinbase announced the ability to buy non-fungible tokens with bank cards thanks to a partnership with Mastercard.
In November 2021, Haas spoke about a planned integration with DeFi platforms.
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