Coinbase shares stumble as muted cryptocurrency trading leads to third-quarter loss

Coinbase On Wednesday, it reported weaker-than-expected third-quarter results, weighed down by muted trading in the cryptocurrency market.

The stock fell more than 4% in extended trading.

Here's what the company reported for the third quarter compared to what Wall Street expected, according to a survey of analysts conducted by LSEG:

Earnings per share: 28 cents vs. 41 cents expected Revenue: $1.21 billion vs. $1.26 billion expected

Coinbase, which operates the largest U.S. marketplace for buying and selling cryptocurrencies, reported net income of $75.5 million, or 28 cents per share, compared with last year's loss of $2.3 million, or 1 cent per share.

Net income in the fourth quarter included pre-tax losses of $121 million in Coinbase's cryptocurrency investment portfolio, the vast majority of which was not realized, as cryptocurrency prices were lower on September 30 than on June 30.

Within its core business, revenue from retail grew 98% to $483.3 million compared to the prior year, while institutional revenue brought in $55.3 million during the quarter, an increase of 292% from the same period last year. Total transaction revenue was $572.5 million, an increase of 98% year over year.

Revenue from Coinbase subscriptions and services — which include stablecoins, staking, and leverage for major traders among other things — saw a more modest 7% decline to $556.1 million.

The cryptocurrency market has been in a slump for most of this year, stuck in a narrow range between $55,000 and $70,000. Bitcoin missed any significant catalysts and suffered low volatility as investors watched the US presidential race and largely stood on the sidelines. Coinbase has been an active lobbyist for the cryptocurrency industry this year, spending millions supporting pro-crypto political action committees.

Coinbase also announced a $1 billion stock buyback in its earnings report.

This is a breaking news story. Check back for updates.