Coinbase Global Inc. shares kept sliding after the company reported first-quarter earnings on Tuesday, which showed the cryptocurrency exchange lost hundreds of millions of dollars in the first quarter.
The Shares extended recent declines, recently falling 24% on Wednesday to $55.36, on pace for their lowest close since the stock began trading in April 2021. The stock is currently down for five consecutive days, falling 57%. The stock has fallen 78% so far this year.
Coinbase posted a first-quarter loss of $429.7 million, or $1.98 a share, on revenue of $1.2 billion. That compared with earnings of $387.7 million, or $3.05 a share, on $1.8 billion in revenue a year earlier. Analysts had projected a loss of 1 cent a share on revenue of $1.5 billion, according to FactSet.
Coinbase generates a majority of its revenue through transaction fees, which fell substantially in the first three months of the year. The number of monthly transacting users also declined, and Coinbase said in its shareholder letter that it expects both number of users and trading volumes to decline again in the second quarter.
Crypto stocks track underlying cryptocurrencies, such as bitcoin and ether, which have been battered this year. With the Federal Reserve raising interest rates steeply to fight four-decade highs in inflation, speculative assets like crypto have been among those hit hardest.