Shares in Coinbase dived more than seven per cent in after hours trading after the cryptocurrency exchange posted third quarter results that missed market expectations.
Meanwhile, the firm reported 7.4 million monthly transacting users, down from 8.8 million in the second quarter. Trading volume was also down, from $462 billion in Q2 to $327 billion in Q3.
The exchange had already warned in August that it expected lower trading volumes and users for the quarter because crypto prices were down over the summer.
Says the firm in its shareholder letter: “As our year-to-date results have clearly demonstrated, our business is volatile. Coinbase is not a quarter-to-quarter investment, but rather a long-term investment in the growth of the cryptoeconomy and our ability to serve users through our products and services.”
With that in mind, Coinbase is investing in growth, revealing that it has hired over 600 people during the quarter as it moves into new areas, such as its prime brokerage offering for institutional clients, a direct deposit feature and an upcoming NFT marketplace.