Crypto exchange Coinbase (COIN.O) reported a drop in first-quarter profit on Thursday as a steep rise in costs more than offset revenue growth in its transaction and subscription units.
Total operating expenses soared 51% to $1.3 billion in the quarter, driven by increased marketing expenses as well as losses on crypto assets held for operations, the company said.
U.S. President Donald Trump's erratic trade policy had triggered volatility across asset classes during the first three months of the year, rattling financial markets and triggering a selloff in assets perceived as risky such as crypto.
However, its transaction revenue rose 17.3% to $1.26 billion. Revenue from the subscription and services unit, which houses businesses outside of trading, also jumped 37% to $698.1 million.
Total revenue rose to $2.03 billion from $1.64 billion a year earlier.
The company earned adjusted net income of $526.6 million, or $1.94 per share, for the three months ended March 31, compared with $679.2 million, or $2.53 per share, a year earlier.
(This story has been corrected to fix the prior-year net income to $679.2 million from $697.2 million in paragraph 2)
