Crypto exchange Coinbase posts smaller first-quarter loss
2023.05.04 17:05
© Reuters. FILE PHOTO: A representation of the cryptocurrency is seen in front of Coinbase logo in this illustration taken, March 4, 2022. REUTERS/Dado Ruvic/Illustration//File Photo
(Reuters) -Cryptocurrency exchange Coinbase (NASDAQ:) Global Inc posted a smaller first-quarter loss on Thursday after investors tiptoed back to the strained asset class to hedge their bets against a worsening economic backdrop.
Coinbase’s shares, which lost 85% in 2022, rose 40% so far this year as cryptocurrencies gain some ground.
The San Francisco-based company’s net loss narrowed to $79 million in the three months ended March, from $430 million in the year-ago quarter, sending its shares up 3% in extended trading.
After a brutal selloff in 2022, investors slowly return to the speculative asset class to hedge against elevated market risks from worsening recession concerns and a crisis of confidence in the banking sector.
Still trading volumes more than halved to $145 million in a signal that the reversal is yet to materialize into gains for the cryptocurrency exchange.
