In early morning trading, coinbase, a cryptocurrency trading platform, fell 23.7% to $55.67. The company announced today that it had a loss of US $429.7 million in the first quarter ended March and a profit of US $771 million in the same period last year; Revenue fell 27.05% year-on-year to US $1.165 billion, lower than the US $1.48 billion expected by the market; Adjusted loss of $1.98 per share.
The group disclosed that the trading volume fell to US $309 billion in the previous quarter, compared with us $335 billion in the same period last year; Retail sales fell 38% to $74 billion, while institutional investors rose 9% to $235 billion.
In addition, coinbase said in a document submitted to the SEC on Tuesday that in case of bankruptcy, the cryptocurrency assets held by the exchange may be regarded as the property of bankruptcy proceedings, and customers may be regarded as general unsecured creditors. In the case of enterprise bankruptcy, generally unsecured creditors suffer the most losses because they are one of the creditors who are finally paid.
Coinbase said that the disclosure of new risk information may lead customers to believe that keeping encrypted assets on the platform is "more risky", which in turn will have a significant impact on the company's financial position. However, the company's CEO Brian Armstrong said on Wednesday that coinbase was not at risk of bankruptcy and that the new risk information disclosed by the company in its latest quarterly documents was only to meet the requirements of the sec.