(Bloomberg) -- Coinbase Global Inc. reported a narrower third-quarter loss as the largest US crypto exchange reigned in expenses while bracing for potentially intensifying “macro headwinds” going into next year. 

Revenue tumbled 55% to $590.3 million, missing the $649.2 million estimate from analysts polled by Bloomberg. It was the third consecutive quarterly decline. Monthly transacting users dropped to 8.5 million, down from 9 million in the prior quarter, but beating estimate of 7.8 million. Trading volume fell to $159 billion, missing estimates. The net loss narrowed to $545 million from $1.1 billion in the prior quarter. 

“Sustained low revenue for multiple years -- that’s a scenario that’s very probable,” Chief Financial Officer Alesia Haas said in an interview with Bloomberg News. 

Coinbase is “preparing for 2023 with a conservative bias and assuming that the current macroeconomic headwinds will persist and possibly intensify,” the company said in a shareholder letter. Shares of Coinbase initially rose as much as 9% in US post-market trading, before paring the gain by about half. They’ve declined 78% this year as the prices of most cryptocurrencies tumbled in what has become known as the crypto winter.

Helped by rising interest rate environment, interest income jumped to $101.8 million from $32.5 million in the prior quarter. 

“We already know trading volume is weak and will be weak in the near term,” said Owen Lau, analyst at Oppenheimer. But with “high interest rate, as well as expense control, losses are shrinking. If they continue to manage expenses, they should be able to further shrink the loss in the fourth quarter,” he said. 

To weather the crypto market downturn, Coinbase has cut staff, formed partnerships with the likes of BlackRock and reduced its venture-capital investments and acquisition activity. 

While plagued by market-share losses through much of this year, Coinbase regained some market share in October, partly as a result of making its rates more attractive to large institutional traders, according to CryptoCompare.

Coinbase said in May that the US Securities and Exchange Commission sent a voluntary request for information on its listings and listing process, and it does not yet know if this inquiry will become a formal investigation. It’s under scrutiny by the SEC for potentially making unregistered securities available for trading, Bloomberg previously reported.

Read More: Coinbase Chief Product Officer Steps Down During Reorganization

(Adds comments from the chief financial officer and an analyst.)

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