Coinbase Records $1 Billion Loss in Q2
In its recently published second quarter performance, Coinbase reported a loss per share of $4.95 against the predicted $2.65. The exchange also missed its revenue estimates reporting $808.3 million against the $832.2 million expected.
Coinbase’s net revenue declined from $2.033 billion in Q2 of 2021 to $802.6 million in Q2 of 2022, representing a drop of around 60%. This is worsened by a sharp increase in operational costs by over $500 million.
The decline in revenue amplified by the crypto market crash over the last eight months flipped Coinbase from an operating profit of $874.7 million in the Q2 of 2021 to a $1.04 billion operating loss in Q2 of 2022.
Coinbase’s Trading Volume Takes a Hit
While the crypto market crash played a significant role in the Q2 losses of Coinbase, a sharp decline in trading volume is another major factor.
The trading volumes at Coinbase dropped more than 50% in the second quarter to fall to $217 billion. The volume of retail trades sank by 68%, while institutional trading on Coinbase fell as much as 46%.
On the Flipside
Why You Should Care
Coinbase’s Q2 performance reflects the eight-month market downturn, which has cut Bitcoin’s value to one-third of its November 2021 all-time high.
Read more about the Coinbase – BlackRock partnership in:
Coinbase Partners With BlackRock To Provide Institutional Clients With Crypto Access
Read about the effect of the losses on Coinbase shares below:
Cathie Wood of Ark Invest Dumps Coinbase Shares Amid SEC Probe
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Source: Cryptocurrency - investing.com
