(Reuters) -Cryptocurrency exchange Coinbase Global Inc posted a smaller first-quarter loss on Thursday after investors tiptoed back to the strained asset class to hedge their bets against a worsening economic backdrop.
Coinbase’s shares, which lost 85% in 2022, rose 40% so far this year as cryptocurrencies gain some ground.
The San Francisco-based company’s net loss narrowed to $79 million in the three months ended March, from $430 million in the year-ago quarter, sending its shares up 3% in extended trading.
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.
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)
