Coinbase shares rose by 9% during after-hours, following a better-than-expected first quarter. The company saw earnings per share (EPS) of 0.45 against an expected – 0.86.
Total revenue for the first quarter was $772 million, which was less than last year’s $1.16 billion but still better than expected. Coinbase’s big success during the quarter was its increase in users’ deposits. The exchange holds $125 billion in crypto of client deposits, up from $75 billion last year.
Overall, the firm made a loss of $69 million. This is considerably less than the $430 million lost during the same quarter of last year.
Coinbase execs keep selling their stock
Coinbase has up to $3.4 billion in public debt, around $275 million in pending bills, and $119 million in crypto debt. The company has also sold in the region of $200 million of its stock since last December.
One of the firm’s biggest assets is its crypto holdings, which are worth up to $394 million, not including borrowed crypto.
The exchange has been losing money consistently every quarter since the start of 2022 with the second quarter of 2022 seeing it shed more than $1 billion. The company is also facing various legal troubles including a potential charge by the SEC for selling unregistered securities.
Company executives don’t seem to be projecting a lot of confidence, as they keep selling their stock.