(Reuters) -Cryptocurrency exchange Coinbase Global Inc posted a smaller-than-expected first-quarter loss on Thursday after investors tiptoed back to the strained asset class to hedge their bets against a worsening economic backdrop.
The San Francisco-based company’s net loss narrowed to $78.9 million in the three months ended March, from $429.7 million in the year-ago quarter.
On a per share basis, the company reported a loss of 34 cents a share, while analysts estimated a loss of $1.35 a share, sending its shares up nearly 7% in extended trading.
Coinbase’s shares, which lost 85% in 2022, rose nearly 40% this year up to Thursday’s close as cryptocurrencies gain some ground.
After a brutal selloff in 2022, investors slowly return to the speculative asset class to hedge against elevated market risks from worsening recession concerns and a crisis of confidence in the banking sector.
“This is the fourth crypto cycle that Coinbase has been through and we’ve emerged stronger after each one,” Chief Executive Officer Brian Armstrong said.
Still trading volumes more than halved to $145 million in a signal that the reversal is yet to materialize into gains for the cryptocurrency exchange.
(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Maju Samuel)