(Bloomberg) -- Coinbase Global Inc. fell as much as 10% on Wednesday, its biggest drop since May, after the firm reported worse-than-expected third-quarter revenue figures.
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The selloff, which comes a day after shares closed at fresh record high, has stripped about $2.7 billion in value from the largest U.S. cryptocurrency-exchange. Coinbase attributed the disappointing results to a volatile period of trading, which included Bitcoin sinking to a seven-month low in late September. The shares pared some of their losses and were last trading 3.5% lower at $344.81 in New York as Bitcoin advanced.
“Despite significant excitement in recent weeks and large crypto secular tailwinds, third quarter results fell well below expectations,” said Mizuho analyst Dan Dolev.
Read more: Coinbase Sinks as Analysts Say Results Fell Short: Street Wrap
In spite of Wednesday’s decline, Coinbase remains more than 35% above its $250 direct listing price from April. After seeing an initial pop higher in its first few days of trading, the stock’s advance stalled during much of the summer as Bitcoin prices languished. But the shares have rebounded over the last month as Bitcoin climbed to a record high and after the firm added the popular Shiba Inu meme token to its offerings.
“Shibu Inu is driving outsized retail interest so far this quarter so blended take rates should recover,” wrote D.A. Davidson analyst Christopher Brendler. He added that Wednesday’s selloff is a buying opportunity for investors.
Read more: Bitcoin Hits Record as Inflation Hedge Drumbeat Grows Louder
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