Coinbase Stock Falls: Q3 Losses

Key information

Shares of Coinbase fell 2.33 percent on Monday, November 4.
The company's revenues were lower than expected, amounting to 1.1 billion euros.
Trading fees contributed €445.4 million to total revenue for the quarter.

Coinbase's stock price saw a significant decline of nearly 20 percent over the past week, hitting its lowest point in over two years. On Monday, November 4, when the market opened, shares of Coinbase fell 2.33 percent, settling at 164.28 euros. This decline can be attributed to the publication of financial results for the third quarter of 2024, which did not meet Wall Street's expectations.

The company generated total revenue of 1.1 billion euros, below the 1.15 billion euros forecast by Bloomberg analysts. Its net profit amounted to 69 million euros, significantly less than the 103.9 million euros anticipated. Coinbase's revenue breakdown reveals that trading fees contributed €445.4 million, institutional revenue reached €50.9 million during the quarter, and other transaction-related revenue was totaled 31.3 million euros.

Factors contributing to the decline

Several factors contributed to this decline in Coinbase's revenue, including declining cryptocurrency trading volume and individual investors' disinterest in digital asset trading. The price of bitcoin, which has stagnated between 55,200 and 64,400 euros for several months, has discouraged investor activity, leading to a sharp reduction in transaction fees.

However, Coinbase's subscription and services revenue, which includes stablecoins, staking and leverage services for traders, saw a 66 percent year-over-year increase, reaching 512. 1 million euros. Analysts at JPMorgan Chase & Co. remain optimistic about Coinbase's future prospects, saying in a note relayed by Bloomberg that “although overall results fell short of expectations, we see Coinbase continuing to expand in emerging areas of its business, welcoming opportunities for future growth.”