Coinbase (COIN), the largest cryptocurrency exchange in the U.S., missed analysts' expectations on the top and bottom line in its Q1 2021 earnings report, its first ever as a public company.
Revenue: $1.80 billion versus $1.81 billion expected
Earnings per share: $3.05 versus $3.09 expected
The company's stock was down more than 3% following the announcement.
"Our strong Q1 2021 results reflect the strength of the crypto price cycle we entered in Q4 2020. We saw many crypto assets reach all time high prices, high levels of volatility, and increased interest across the entire cryptoeconomy," the company said in a statement.
According to the report, Coinbase now has more than 56 million verified users up from 34 million in the same quarter last year, including over 8,000 institutions and 134,000 "ecosystem partners."
The company, however, also pointed to potential headwinds from competitors in the crypto space.
"Our competitors are supporting certain crypto assets that are experiencing large trading volume and growth in market capitalization that we do not currently support, as well as offering new products and services that we do not offer."
The firm, though, says it welcomes the competition.
Coinbase's earnings follows news on Thursday that rival exchange Binance is under investigation by both the Justice Department and Internal Revenue Service for potential
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