The shares of Coinbase Global Inc. (COIN) posted their worst single-day decline in nearly two years, falling 15.34% to close the session at $179.25 on Oct. 31.
The shares of Coinbase Global Inc. (COIN) posted their worst single-day decline in nearly two years, falling 15.34% to close the session at $179.25 on Oct. 31. The selloff came as third-quarter earnings at the largest cryptocurrency exchange in the United States fell 11% below Wall Street's expectations.
Despite the sudden downturn, market sentiment regarding the company’s future performance is surprisingly very optimistic. After-hours trading demonstrates some signs of catching up, with a slight gain of 1.43%, whereas popular traders have shown their bullish forecast for 2025.
While the revenue from transactions decreased 27% quarter-over-quarter to $573 million, the figure represents an impressive year-over-year growth of more than 98% compared to Q3 2023.
This is all important to note within the broader market context, in which Oct. 31 saw close to $950 billion erased in terms of overall market capitalization. Interestingly enough, MicroStrategy, led by Michael Saylor, has surpassed Coinbase in market capitalization with its $49.5 billion versus $44.54 billion for Coinbase.
The U.S. election on Nov. 5 may add further volatility to the markets. Meanwhile, Bitcoin is currently trading at around $69,546, down 3.8% amidst a broad market selloff.
This drop is particularly notable as it represents the most substantial daily decline for Coinbase since a 21% fall in July 2022, according to Market Watch data.
The broader market also faced losses, with the Nasdaq Composite falling 2.76% and the S&P 500 declining by 1.86%.
For the third quarter, Coinbase No Follow a net income of $75 million, significantly below the anticipated $112.2 million projected by analysts surveyed by Bloomberg. Although the company's net revenue of $1.13 billion reflected an increase year-over-year, it represented a decrease from the previous quarter's $1.38 billion.
In conjunction with its earnings report, Coinbase announced a $1 billion share buyback program, which the board of directors stated reflects confidence in the company's future operations. The timing and execution of the buybacks will depend on prevailing market conditions.
Despite the disappointing earnings, Coinbase's leadership expressed optimism regarding the crypto landscape, noting a shift in political attitudes toward cryptocurrency ahead of the upcoming U.S. presidential election.
The company highlighted its commitment to supporting pro-crypto candidates by pledging an additional $25 million to the political action committee Fairshake, aimed at influencing the 2026 midterm elections.
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