Coinbase Global, Inc. (COIN), a company that provides financial infrastructure and technology for the crypto-economy, has declined 13.24% in aftermarket trading session and consequently is trading at $310.66 at the time of the writing. The decline is attributable to the announcement of quarterly results by the company. On Tuesday, COIN stock closed the day at $357.39 after increasing 0.98% during regular trading hours.
Why COIN Stock Declining?
In the late hours of Tuesday, COIN released the financial results for the third quarter of the fiscal year 2021. The quarter ended on 30th September 2021. The company generated net revenue of $1.31 billion during the quarter against $315.35 million for the same period of 2020. The total operating expenses for the period were $1.02 billion against $213.8 million for the same period of 2020. The company generated a net income of $406.1 million (or $1.92 and $1.62 per basic and diluted share respectively) during the quarter against $81.29 million (or $0.25 and $0.23 per basic and diluted share respectively) for the same period of 2020. The company had cash of $6.35 billion on 30th September 2021.
Alongside the financial results, the company also provided the financial outlook for the coming quarters. The company said that the total MTU’s and total trading volume would be higher in the fourth quarter as compared to the third quarter of fiscal 2021. The company also highlighted that for the full year 2021, the average retail MTU’s would be 8.5 million (in case of a high scenario) while for the low scenario, the average retail MTU’s would be 8 million.
Brian Armstrong, CEO of COIN, while commenting on the results said that quarterly results depict that the company is uniquely positioned to help build the bridge that enables the people to migrate into this new evolution of crypto-economy. He stressed that the long-term vision would take time and investment to realize and the company is proud of the hard work of its teams around the globe.
What’s Next for COIN Stock?
During the last three months, COIN stock has increased more than 25%, The prime reason for that decline appears to be the adoption of business strategies by the company that in turn is attracting the attention of the investor community. Potential investors should keep a close eye on the fluctuations of COIN stock to make an informed decision regarding their investments.