After investors tiptoed back to the strained asset class to hedge against a worsening economic backdrop, cryptocurrency exchange Coinbase Global Inc. (COIN.O) posted a smaller-than-expected first-quarter loss on Thursday.
The San Francisco-based company’s net loss fell to $78.9 million in the March quarter from $429.7 million a year earlier.
In extended trading, the company’s shares rose almost 7% after reporting a 34-cent loss per share compared to analysts’ $1.35 loss.
As cryptocurrencies rise, Coinbase’s shares, which dropped 85% in 2022, recovered about 40% this year through Thursday’s closing.
After a violent selloff in 2022, investors progressively return to speculative assets to protect against market risks from deepening recession fears and a banking sector confidence crisis.
“This is Coinbase’s fourth crypto cycle and we’ve emerged stronger after each one,” CEO Brian Armstrong remarked.
Still, trading volumes more than halved to $145 million, suggesting the cryptocurrency exchange has yet to profit from the reversal.