Shares of major crypto exchange Coinbase Global Inc COIN slid over 11% in extended trading on Tuesday, following dour quarterly earnings.
What Happened: The company reported a net loss of $430 million for the quarter, a considerable decline from the $840 million profit reported in the fourth quarter of 2021.
The exchange recorded $309 billion in overall trading volume, down 44% from the last quarter.
Coinbase expects a decline in annual average retail monthly transacting users (MTUs) and trading volume in the current quarter.
The crypto exchange also anticipates a prolonged and stressful scenario for its business and plans to manage 2022 potential Adjusted EBITDA losses to approximately $500 million on a full-year basis.
See Also: COINBASE REVIEW
“The first quarter of 2022 continued a trend of both lower crypto asset prices and volatility that began in late 2021. These market conditions directly impacted our Q1 results,” said the exchange.
Bitcoin BTC/USD was trading above $47,700 at the start of the year but has since lost 36% in value. Other leading cryptocurrencies like Ethereum ETH/USD and Dogecoin DOGE/USD have seen similar drawdowns in price.
“Our outlook for 2022 is largely unchanged. We plan to invest significantly, yet prudently, throughout this year to continue building the future of crypto,” said Coinbase.
Price Action: According to data from Benzinga Pro, Coinbase shares fell 11.6% during the after-hours session on Tuesday.