Coinbase Q3 Revenue Shrinks More Than Expected
As a result of FOMO, investors are downplaying some of the high-profile failures this reporting season, crypto-related equities are surging to new highs.
Coinbase Global Inc., the world’s largest digital asset exchange, alarmed investors this week after reporting lower third-quarter sales than Wall Street expected owing to bitcoin price volatility and other digital tokens.
Marathon closed 15% lower
Marathon Digital Holdings Inc., a cryptocurrency miner, plummeted almost 15% last week after reporting revenue that fell short of analysts’ estimates.
While shares of Coinbase and Marathon originally plummeted following their results, the enthusiasm for all cryptocurrencies has continued to raise the broader industry, leading to a comeback in these two firms in the last two days.
The ETF, which covers over 50 crypto firms, gained 1.8 percent this week and established a new high, increasing earnings by 36 percent since the end of September.
Bitcoin and Ether, which account for around 65 percent of the $ 2.7 trillion cryptocurrency market capitalization, have reached new highs.
“There is a lot of short-term volatility in cryptocurrency, therefore you see it in cryptocurrency stocks,” said Natalia Radyushkina, CFO of the crypto platform Unbanked.com. “However, the atmosphere is overwhelmingly favourable, and it reveals itself in the fourth quarter, when fireworks are generally seen.”
Bakkt Holdings Inc. became the latest cryptocurrency business to lose 9.8% for the first time since going public in October on Friday.
Galaxy Crypto Holdings Ltd. reports on Monday, and miner Riot Blockchain Inc. reports towards the end of the week, so crypto equities investors may see further volatility this week.