Coinbase reports third-quarter loss as volumes drop

US cryptocurrency exchange Coinbase Global Inc (COIN.O) on Thursday reported a third-quarter loss as high inflation, rising interest rates and geopolitical tensions weakened demand for risky assets, sapping trading volumes for digital currencies like bitcoin.

Coinbase said it had a net loss of $544.6 million for the three months ended Sept. 30, or $2.43 per diluted share, compared with a profit of $406.1 million, or $1.62 per diluted share, a year earlier.

Transaction revenue fell 64 per cent from a year earlier to $365.9 million.

“Transaction revenue was significantly impacted by stronger macroeconomic and crypto market headwinds, as well as trading volume moving offshore,” the company said in a shareholder letter.

Net revenue was down 53.3 per cent year-over-year at $576.4 million.

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