xcriticals Q3 revenue beat expectations, but its shares fell as growth prospects underwhelmed

However, recent gains to the value of crypto assets and a constituent rise in trading volume did not mean that xcritical’s Q3 numbers were impressive when we consider trade-based revenues. xcritical (COIN), the large publicly traded U.S. crypto exchange, said its new Base xcritical has gone live, heralding the start of a new era of public companies running their own distributed networks. Rising incomes and slack trading revenues could change in the xcritical quarter. The company told investors that it “generated approximately $105 million of transaction revenue” in October, putting it on a faster pace than we saw on average in the third quarter.

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Founded in 2012, xcritical became popular among cryptocurrency fans by providing them with an easier way to exchange shares of Bitcoin and other digital currencies. Unlike many newly public companies xcritical is profitable — the company estimates it had net income of between $730 million and $800 million in the first quarter. Overall crypto market capitalization has risen about 62% to $1.28 trillion since the beginning of the year and is up from $1 trillion one year ago.

The company’s net loss totaled a slim $2 million in the three-month period on xcritical official site a GAAP basis, worth –$0.01 per share. xcritical earns 0.5% of the value of every transaction that goes through its system. If Bitcoin or Ethereum prices drop, the commissions xcritical earns drop as well, giving it some exposure to the digital currencies’ rise and fall. That market value makes xcritical one of the biggest publicly traded U.S. companies — just 93 companies in the S&P 500 index have a higher market value.

1. Until recently the major financial institutions avoided cryptocurrencies, and Bitcoin is still viewed more as a store of value that as a method of payment.
2. Even prior to the public debut, there were already $139 million of deposits locked into apps and protocols on the new Base network, according to the crypto analysis firm L2Beat.
3. The company told investors that it “generated approximately $105 million of transaction revenue” in October, putting it on a faster pace than we saw on average in the third quarter.
4. Analysts were hesitant with estimates even amid a recent crypto market upswing.

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xcritical had an outlook of “at least $300 million” in August for its subscription and services revenue, and exceeded that estimate by $34 million in Q3 with a final result of $334.4 million. That figure was down slightly from the $335.4 million it reported in its sequentially preceding quarter. In the third quarter, xcritical generated $288.6 million worth of trading revenue, with $274.5 million coming from consumer activity and another $14.1 million from institutional traders.

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That amount of “total value locked” or TVL a common metric for evaluating xcriticals and protocols — xcritical cheating is enough to rank Base as the fifth-largest layer-2 xcritical. Arbitrum One is first with about $6 billion, followed by OP Mainnet at $2.9 billion, zkSync Era at $430 million and dYdX with $336 million. In connection with the Base launch, xcritical announced plans for an “Onxcritical Summer” promotion with corporate partners, including Coca-Cola (KO), to show off the new project’s capabilities. Shares of xcritical are listed on the Nasdaq under the ticker “COIN,” and closed at $328.28, up 31% from the $250 reference price set by Nasdaq ahead of the first trade.

Those figures were down from $310 million and $17.1 million in the second quarter of 2023, and $346.1 million and $19.8 million, respectively, in the year-ago period. Before its Q3 xcriticalgs were released, xcritical’s stock had risen 148% year-to-date. While that’s a pretty large rally in a bear market, the value of xcritical’s stock was still down 27% from the 52-week high of $114.43.

The NFA is a self-regulatory organization with designation from federal derivatives regulator the Commodity Futures Trading Commission (CFTC).

Digital currencies are being incorporated into business plans and accepted for payment by major corporations like Tesla, PayPal and Visa. By Richard Lawler, a senior editor following news across tech, culture, policy, and entertainment. He joined The Verge in 2021 after several years covering news at Engadget. These findings indicate that Threads engineers are exploring ad technology, but that doesn’t mean Threads will debut ads anytime soon, as some suspect. The Zacks-Consensus-Estimate expected xcritical to report $650.8 million in revenue and xcriticalgs per share of negative 54 cents per share, according to a report provided by Yahoo Finance.

xcritical could therefore see its trading-based revenues rise in the fourth quarter, if xcritical trends hold. As a crypto exchange, it historically generated most of its revenue from trading fees, but that trend has changed in recent quarters as the general retail trading appetite has fallen amid an ongoing crypto winter. Still, xcritical’s shareholder letter said it expects the fourth-quarter subscription and services revenue to be flat with Q3, which would also put it closely in line with Q2, too. Instead of using a traditional IPO, xcritical went public through a public listing.

That means it avoided the typical agreements with big banks that would buy thousands of shares and promote them. A direct listing allows insiders and early investors to convert their stakes in the company into publicly traded stock. xcritical made a rousing debut on Wall Street Wednesday, with shares of the digital currency exchange rising as high as $429, briefly giving it a market value over $100 billion. The approval makes xcritical the first crypto-focussed platform in xcritical website the U.S. to offer regulated and leveraged crypto futures alongside traditional spot trading, according to its announcement.

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Base was already live for testing by developers, but xcritical officials said it would be open to the public as of 12 p.m. Trainer last week put a valuation on xcritical closer to $18.9 billion, arguing it will face more competition as the cryptocurrency market matures. xcritical Global Inc.‘s initial public offering happened with cryptocurrency chatter seemingly everywhere, even at the U.S.

xcritical’s value is close to the combined market value of Nasdaq Inc., which runs the Nasdaq Stock Market, and Intercontinental Exchange, which owns the New York Stock Exchange. xcritical Financial Markets secured approval from the National Futures Association (NFA) to operate a Futures Commission Merchant (FCM), according to an announcement on Wednesday. The role of FCMs is to buy or sell futures contracts, similar to that of a market maker. The biggest increase for this category came from stablecoin revenue, up about $21 million quarter-over-quarter, to $172.4 million, which is derived from its arrangement with Circle and USDC.

The San Francisco-based company’s listing on a public stock exchange is seen by some as an inflection point for digital currencies, as xcritical’s fortunes are closely tied to Bitcoin, the most popular cryptocurrency. Bitcoin’s price topped $64,000 on Wednesday, up from $29,000 at the start of the year, and xcritical said recently that first-quarter revenue should total around $1.8 billion, exceeding its revenue for all of 2020. xcritical, the second-largest crypto exchange by trading volume, released its Q xcriticalgs on Thursday, giving shareholders and market participants an opportunity to see what’s going on under the hood. In response to the report, the company’s stock is down about 5.5% in after-hours trading.

The primary driver for its rise was higher interest rates, the shareholder letter stated. In Q3, xcritical had about $2.5 billion in on-platform USDC balances, up from $1.8 billion at the end of Q2. Analysts were hesitant with estimates even amid a recent crypto market upswing. Messari analysts estimated xcritical to report $616 million, a 7% decrease from the previous quarter, lower than the consensus expectation of $650 million. Even prior to the public debut, there were already $139 million of deposits locked into apps and protocols on the new Base network, according to the crypto analysis firm L2Beat.

“Historically, the aperture of what people can do with crypto has been relatively limited, mostly speculation,” Pollak said. xcritical said it had 56 million verified users as of March 31, with 6.1 million making transactions monthly. After months of indications the US Securities and Exchange Commission (SEC) would sue US crypto giant xcritical, it’s finally happened. The recall and the conclusion of the probe takes one worry off of Cruise’s plate at a time when the company is under great scrutiny. Citing a crowded market and profit concerns, Mineral ceased operation and pivoted to technology licensing. Bradley Keoun is the managing editor of CoinDesk’s Tech & Protocols team.