The stock of cryptocurrency trading platform Coinbase Global (COIN) is down 3% after the company’s latest financial results missed Wall Street targets across the board.
Coinbase reported third-quarter earnings per share (EPS) of $0.28 U.S., which was below the $0.45 U.S. consensus expectation of analysts.
Revenue in the July through September quarter totaled $1.21 billion U.S., which fell short of the $1.26 billion U.S. estimated on Wall Street.
The company’s management team blamed the poor results on a slump in cryptocurrency trading during the summer months when the price of Bitcoin (BTC) was on the decline.
Coinbase operates the largest U.S. marketplace for buying and selling cryptocurrencies. Its platform is popular with individual retail investors and traders.
Because of this, the company’s financial results and stock tend to rise and fall with the price movements of digital coins and tokens such as Bitcoin and Ethereum (ETH).
However, within the company’s core crypto trading business, revenue from retail trading grew 98% year-over-year during the quarter to $483.3 million U.S.
Institutional revenue totaled $55.3 million U.S. during Q3, a 292% increase from the same period in 2023. Total transaction revenue of $572.5 million U.S. was up 98%.
Management said that things are looking better for the current fourth quarter of the year as Bitcoin breaks out and rises close to its all-time high of just under $74,000 U.S.
Along with its latest financial results, Coinbase Global announced a new $1 billion U.S. stock buyback program.
Prior to today (Oct. 31), the stock of Coinbase had risen 35% this year to trade at $211.74 U.S. per share.
