Coinbase posts worst day in over two years despite share buyback

Coinbase's share price posted its biggest daily fall, in over two years during a broader stock market downturn

Written by: Olumide Adesina • Friday, November 1, 2024 • 1 min read

• Last updated: Friday, November 1, 2024

Coinbase’s share price posted its biggest daily fall, in over two years during a broader stock market downturn, but the street remains hopeful about the company’s 2025 earnings outlook.

The largest publicly traded cryptocurrency exchange virtually disappointed the street with its third-quarter miss. COIN experienced its largest intraday decline since July 26, 2022, plunging as much as 21%, ending the trading day at $179.25, a 15.34% decline. Although the earnings numbers were lower than expected, the company’s announcement of a large share buyback program, demonstrated good performance.

This was the biggest intraday drop since July 26, 2022, when the price dropped 21% because of an investigation by the US Securities and Exchange Commission.
Although the exchange’s transaction revenues decreased by 27% from the previous quarter to $573 million, however, increased by more than 98% from the third quarter of 2023.

Economic worries and election-related uncertainty have depressed the mood, notwithstanding some regulatory triumphs that have increased hope in the crypto business.
MicroStrategy with a $49.5 billion market valuation, is worth more than Coinbase, which is at $44.54 billion.

In a statement to shareholders, the business stated, “The next significant milestone in our ongoing work to drive regulatory clarity for crypto is the upcoming 2024 elections.”

“The crypto voter is being courted by the presidential contenders”. Coinbase CEO Brian Armstrong stated on a conference call that over 350 federal candidates have now taken pro-crypto stances.

In the third quarter, Coinbase’s overall trading revenue doubled to $572.5 million, contributing to the exchange’s $1.21 billion total revenue, up from $674.15 million in the same period last year.

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ABOUT THE AUTHOR See More

Olumide Adesina

Financial Market Writer

Olumide Adesina is a French-born Nigerian financial writer. He tracks the financial markets with over 15 years of working experience in investment trading.