Cryptocurrency exchange Coinbase said it posted a net loss of $430 million in the first quarter of 2022.
Coinbase’s letter to shareholders said the company brought in $1.16 in revenue during the period, well below the $1.59 billion in operating expenses, which translates to a loss of $430 million. The Q4 2021 net sales figure is $2.49 billion, as previously reported by The Block.
“The first quarter of 2022 continues the downward trend in both crypto asset prices and volatility that began in late 2021. These market conditions directly impacted our Q1 results.” the company said. “But, we enter this market with foresight and preparation, and are as excited as ever about the future of crypto.”
Trading volume reached $309 billion during the period, down from $547 billion in Q4 2021.
Additionally, Coinbase reported monthly trading users at around 9.2 million, according to the earnings release. Coinbase said in its letter that this drop in user numbers was anticipated.
In the letter, Coinbase added that “we believe these market conditions are not permanent and we remain focused on the long term.” The company said future plans include continuing to invest in its wallet and NFT-related services.
Shares of Coinbase have experienced significant volatility in recent days amid broader turmoil in the US stock market. In the NFT space, Coinbase began rolling out beta access to its marketplace in late April.
The price of $COIN is falling as of press time in after-hours trading, falling to $62.82 after Tuesday’s close, down 12.6% to $72.99.