Coinbase, the largest cryptocurrency exchange in the United States, released its first quarter results after hours on Tuesday, with a net loss of $430 million and a year-on-year decrease in revenue of 27%, lower than market expectations. The company's share price fell more than 15% in after hours trading, while in the normal trading hours before the earnings announcement, the company's share price fell 12.6%.
Since the end of March, coinbase's share price has fallen by more than 70% with the widespread decline of technology stocks and cryptocurrencies. Bitcoin, the largest cryptocurrency by market value, once fell below the symbolic price threshold of $30000 on Monday, down more than 30% this year.
Overall, coinbase usage declined from the fourth quarter of last year. Retail monthly transaction users (MTU) decreased to 9.2 million from 11.4 million in the fourth quarter, and the total transaction volume decreased to $309 billion from $547 billion in the fourth quarter.
The increase in expenditure also weighed on the company's profits. Total operating expenses in the first quarter were $1.72 billion, exceeding revenue for the first time since the company began to publish financial reports.