Cryptocurrency News

Coinbase Post $1 Billion Dollar Loss in Q2, Trading Volumes Take Major Hit

2022.08.11 00:30

Coinbase Post $1 Billion Dollar Loss in Q2, Trading Volumes Take Major Hit
Coinbase Post $1 Billion Dollar Loss in Q2, Trading Volumes Take Major Hit

America’s biggest cryptocurrency exchange, Coinbase (NASDAQ:COIN), has released its second-quarter revenue reporting a larger-than-expected quarterly loss of $1 billion amidst a drop in Crypto prices and trading volumes.

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

  • Coinbase’s recent partnership with Wall Street giant and iShares owner BlackRock (NYSE:BLK) is predicted to change the company’s fortune and affect the broader crypto market.

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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