Coinbase Jumps The Q4 Estimates, Share Value Falls Unexpectedly 

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A whopping 11.4 million users were found active on a monthly basis with Coinbase.

 It all started with a bang for Coinbase when the numbers about its users, transactions and revenue amplified to a whopping extent. Where the financial experts approximated the revenue of $2 billion for Coinbase’s Q4 did exceptionally well by surpassing the estimates with $2.5 billion revenue instead. Even the earnings per share outstood the estimate of $1.94 and brought immense happiness for the investors with $3.32 per share. After comparing Q3 with Q4, the numbers were found to be as good as $1.1 billion and $2.3 billion, respectively. The MTU stood at 11.4 million, making the trading volume total $547 billion.

All these reported numbers clearly made the 4th quarter a big hit for the company Coinbase. However, amid the charm of these numbers, it is hard to put the other dull side aside. Last Thursday, the postmarket trading brought a blow to the company when its share fell around 3% out of the blue.

Coinbase stepped forward to hush the babble by holding the geographical wavering and macroeconomic dynamics in different regions accountable for such a recorded drop. This clarification came from Alesia Haas is, the Chief Financial Officer at Coinbase. Inflation and increased interest were also on his list for share tumbling. Alesia also boosted the investors by saying that the team is capable enough to deal with such volatility. 

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Crypto specialists around the globe could not stop themselves from commenting on the situation. The managing partner at Dexterity Capital said that Coinbase had diversified its portfolio, making way for its successful Q4 numbers. If observations are to be made, it is correct to say so because Coinbase reports its altcoins to be contributing to its trading volume as high as 68%. Just for the information, altcoins are cryptos other than Bitcoin and Ethereum. 

Also, one cannot forget about the company’s diversified execution lately by offering subscription and custody facilities. While talking about the future steps of Coinbase, there is immense chatter around the company’s idea to introduce NFT or Non-Fungible Token marketplace. However, there is nothing reported yet about the date from when it will be available for the interested investors. 

The company is also expected to work effectively on its futures exchange FairX acquisition done in January. A decent amount of $4.25 billion to $5.25 billion is also set aside by Coinbase as of now to improve its tech and development department. The primary plan reported is to engage around six thousand employees specializing in technology and research. General and administrative overheads for 2022 will also be a crucial part of this estimated budget. 

Its analysts also expect the average retail MTU for the year 2022 to strike between five to fifteen million. Even if there is a plan to go aggressive with its investment, Coinbase says to remain flexible in its approach to set sync with the volatility of the market. 

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