Coinbase Q1 Profit Falls
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Cryptocurrency exchange Coinbase reported a decline in first-quarter profit on Thursday, as a significant rise in costs overshadowed revenue growth in its transaction and subscription units, causing its shares to drop 3% in extended trading.
Operating expenses surged 51% to $1.3 billion, driven by increased marketing costs and losses on crypto assets held for operations.
Volatility in asset classes, spurred by US President Donald Trump’s unpredictable trade policy, affected financial markets and led to a sell-off in riskier assets like cryptocurrencies.
Despite this, transaction revenue rose 17.3% to $1.26 billion, while revenue from the subscription and services unit, encompassing non-trading businesses, increased 37% to $698.1 million.
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