Coinbase Shares Rise Amid Surprise Q4 Loss

Coinbase shares rose in extended hours trading on Thursday despite posting a surprise net loss in Q4 earnings.

The company's revenue tumbled 21% year-over-year to $1.8 billion, with analysts expecting $1.83 billion. Transaction revenue declined 6% quarter-over-quarter and subscription and services revenue was down 3% over the past year quarter.

Coinbase swung to a net loss of $667 million compared to a $1.3 billion profit in Q4 last year due to falling token prices that led to a slump in trading activity and forced the company to mark down the value of its crypto holdings.

The company said it is well-capitalized to weather these cycles, with $11.3 billion in cash and cash equivalents, and will continue to invest in the future of finance.