Coinbase's first quarter revenue falls 10%, below market expectations

Coinbase, the largest cryptocurrency exchange in the United States, recorded total sales of $2 billion in the first quarter of 2024, down 10% from the previous quarter.
This performance was 4.1% lower than market expectations, and is analyzed as being mainly due to a slowdown in overall cryptocurrency trading volume.
During the same period, net income plummeted by a whopping 95% to $66 million from $1.29 billion in the previous quarter. This is roughly the amount of cryptocurrency Coinbase owns.
This was due to a valuation loss of $596 million. However, net income per share (EPS) was $1.94, beating market expectations of $1.85.
According to the company's reported results, trading revenue was $1.26 billion, down 18.9% from the previous quarter, while trading volume was down 10.5% to $393 billion.
The industry believes that the Trump administration's tariff policies contributed to the decline in cryptocurrency market capitalization during the quarter. Meanwhile, Coinbase's subscriptions and services division revenues increased 8.9%.
Coinbase reported a 2019 growth of 1.3% to $698.1 million, with stablecoin revenue making up the largest portion of the total. Despite overall sales and trading volume declining, Coinbase posted a 2019 growth of 1.3% to $698.1 million.
"We expanded our share of the global spot and derivatives trading market and strengthened our position through core registrations in emerging markets such as Argentina and India."