Shares of Coinbase Global Inc. dipped 5.66% after the largest US crypto exchange posted results below Wall Street expectations even though revenue almost doubled. Riot Platforms fell 6%; MicroStrategy fell 2%.
Total revenue increased to $1.21 billion, less than analysts’ forecast of $1.25 billion. Net income was $75 million, below $112.2 million expected by analysts surveyed by Bloomberg. The company lost $2.3 million in the year-ago period. An accounting change first adopted in the second quarter resulted in Coinbase pricing its digital assets to market value, resulting in a $121 million pre-tax loss in the most recent quarter, according to the company.
“What’s super important here is that Coinbase met all of its financial objectives,” Chief Financial Officer Alesia Haas said in an interview, noting the company met metrics like positive net income and its expense guidance. The company grew its workforce by 5% during the quarter, she said. The company authorized a $1 billion share repurchase program.
Bitcoin hedge-fund proxy MicroStrategy posted a third consecutive quarterly loss after taking an impairment charge against the value of its roughly $18 billion stockpile of the cryptocurrency. And the company announced plans to raise $42 billion over the next three years to buy more Bitcoin. The company’s shares fell 1.8% in overnight trading.
Riot Platforms shares slid 6% in overnight trading after the bitcoin miner's Q3 loss came in wider than Wall Street had expected.
