Coinbase’s first quarter 2022 net loss was $429.7 million, or $1.98 per share, nearly double what analysts had expected. Shares fell 20% in the post-trading session after losing 12.6% in the main session.

Q1 ’22 financial results are in.

Check out the letter we sent to our shareholders here 👉https://t.co/4oxQcGt4yh

— Coinbase (@coinbase) 10 May 2022

In October-December, Coinbase posted a net profit of $840 million, up from $771 million in the first quarter of 2021.

In the January-March period, net income fell to $1.17 billion from $1.6 billion last year. This is due to the decline in traders’ activity – trading volume on the platform was $309 billion versus $335 billion. They are expected to see a substantial decline. Net income reached $1.5 billion, according to the Wall Street Journal.

Compared to the fourth quarter, the value of assets decreased from $278 billion to $256 billion, while monthly active users fell from 11.4 million to 9.2 million.

“The first quarter of 2022 continued the trend of both falling prices and volatility for crypto assets. This affected our results. We do not see the current market conditions as permanent, we focus on the long-term.”writes letters to shareholders.

Coinbase recalled its plans to develop its own wallet and NFT-related services.

The release of the quarterly reports raised questions about holding client funds in the context of a recent SEC requirement. Coinbase CEO Brian Armstrong has made sure that clients’ assets are reliably protected, even in “black swan” conditions.

3/ We believe our Prime and Custody clients have strong legal protection in terms of service that protects their assets even in such a black swan event.

— Brian Armstrong — barmstrong.eth (@brian_armstrong) 11 May 2022

Shares of the Bitcoin exchange fell even before the reports were released, despite the recovery in the hi-tech segment – ​​the Nasdaq Composite index ended trading with a 0.98% gain on May 10. Since the IPO, the price of Coinbase securities has dropped 81.8%. On May 11, these losses will increase, at least at the beginning of the day.

Shares of crypto and mining companies continue to exhibit worse dynamics than the market, with Bitcoin support as a whole threatening to fail around $30,000. On May 9, the sector’s securities fell from 13.2% to 26.3%.

Recall that Mike Novogratz, the founder of Galaxy Digital, allowed a further decrease in the price of digital gold.

In April, a senior executive called for a pause in policy tightening. fed a condition for the resumption of growth of the first cryptocurrency.