© Reuters. FILE PHOTO: A smartphone with displayed Coinbase emblem and illustration of cryptocurrencies are positioned on a keyboard on this illustration taken, June 8, 2023. REUTERS/Dado Ruvic/Illustration/File Picture
By Hannah Lang
(Reuters) -Cryptocurrency change Coinbase (NASDAQ:) on Thursday beat estimates for third-quarter income, however noticed buying and selling volumes decline for the second quarter in a row, sending shares of the corporate down in after-hours buying and selling.
Buying and selling volumes on the crypto change within the third quarter got here in at $11 billion, in contrast with $26 billion a 12 months earlier, mirroring the same fall within the prior quarter ended June 30.
Complete income within the three months ended Sept. 30 was $674.1 million, in contrast with analysts’ estimate of $653.19 million, in accordance with LSEG knowledge.
Shares of the crypto change fell greater than 4% in prolonged buying and selling after outcomes as traders weighed the waning buying and selling volumes.
“Though we proceed to be in a down market with volatility the bottom we have seen in years, Coinbase is financially wholesome,” stated Coinbase CEO Brian Armstrong on a post-earnings name with analysts.
Investor sentiment towards cryptocurrencies has been lukewarm this 12 months after a string of high-profile collapses in 2022 led to outflows of greater than a trillion {dollars} from the sector.
The decline in buying and selling volumes comes as Coinbase continues to battle the U.S. Securities and Alternate Fee (SEC), which sued it and rival Binance in June, alleging it traded no less than 13 crypto belongings which can be securities with out registering them with the regulator. Each have denied the allegations.
In its earlier earnings name, Coinbase Chief Authorized Officer Paul Grewal stated he expects Coinbase to prevail within the case.
In its shareholder letter, Coinbase stated it generated roughly $105 million of complete transaction income in October as the value of bitcoin – the world’s largest cryptocurrency – loved a bounce, however the firm urged warning in extrapolating these outcomes.