Shares of Coinbase Global Inc. continued to slide after the company released its first-quarter results on Tuesday, which showed the cryptocurrency exchange lost hundreds of millions of dollars in the first quarter.
Shares have extended recent declines, recently dropping 24% on Wednesday to $55.36, on pace with their lowest close since the stock began trading in April 2021. The stock is currently down for five consecutive days, dropping 57%. The stock has fallen 78% so far this year.
Coinbase posted a loss of $429.7 million in the first quarter, or $1.98 per share, on revenue of $1.2 billion. That compares with earnings of $387.7 million, or $3.05 per share, on revenue of $1.8 billion a year earlier. Analysts had expected a loss of 1 cent per share on revenue of $1.5 billion, according to FactSet.
Coinbase generates the majority of its revenue from transaction fees, which have dropped significantly in the first three months of the year. The number of users transacting monthly has also declined, and Coinbase said in its shareholder letter that it expects user numbers and transaction volumes to decline again in the second quarter.
Crypto stocks follow underlying cryptocurrencies, such as bitcoin and ether, which have been beaten this year. As the Federal Reserve sharply raises interest rates to combat four-decade highs in inflation, speculative assets like crypto have been among the hardest hit.