Crypto Exchange Coinbase Reports $1 Billion Loss in Q2, COIN Stock Tanks 10%
On Tuesday, August 9, crypto exchange Coinbase (NASDAQ: COIN) reported its earnings for the second quarter of 2022. During Q2, the company reported a loss of a staggering $1 billion.
Coinbase’s loss per share stood at $4.95 against the expected $2.65. Besides, the company also missed its revenue estimates with Q2 revenue at $808.3 million, vs. the $832.2 million expected.
Coinbase’s revenue tanked more than 64% during the second quarter year-over-year amid the crypto market meltdown. The retail transactions revenue also dropped 66% and stood at $616.2 million. If we look at the transaction revenue breakup, Bitcoin accounted for 31% of the revenue while Ethereum accounted for 22% of the revenue.
Coinbase’s net loss also widened to $1.1 billion against $1.59 billion in revenue during the same quarter a year ago. Coinbase’s crypto assets by the end of the June quarter stood at $428 million. This was 50% down from $1 billion in assets during the end of the March quarter. In a letter to shareholders, the company wrote:
“Q2 was a test of durability for crypto companies and a complex quarter overall. Dramatic market movements shifted user behavior and trading volume, which impacted transaction revenue, but also highlighted the strength of our risk management program.”
COIN Stock Tanks Over 10%
Soon as Coinbase declared its second quarter results on Tuesday, the COIN stock came crashing down by more than 10%, and an additional 5% in the after-market hours. The COIN stock is currently trading at $82.90.
During the second quarter, the COIN stock lost 75% of its value. Assets on the platform dropped to $96 billion QoQ from $256 billion. In a letter to shareholders, Coinbase wrote:
“While we did see net outflows in Q2, we observed that the majority of this behavior was institutional clients de-risking and selling crypto for fiat as opposed to withdrawing their crypto to another platform. As a result, our market share of the total crypto market capitalization declined to 9.9% from 11.2% in Q1.”
Recently, Coinbase has entered into a scuffle with the SEC over the allegations of selling security tokens on the platform. But looking at the positive development, Coinbase recently partnered with the world’s largest asset manager BlackRock to offer Bitcoin exposure to institutional clients.
- CleanCore’s Dogecoin Treasury Pays Off Big With $20M Gains as Holdings Near 1B DOGE
- Crypto Market Crash: $700M Liquidated in Bitcoin, ETH, XRP, SOL, DOGE, XPL
- GraniteShares 3x XRP ETF Can Trigger ‘Panic Buying XRP’ Says Expert
- TRUMP Token Gets Major Boost as Issuer Launches $200 Million Treasury Plan
- Gold Vs Bitcoin – Peter Schiff Predicts BTC Will Be ‘Rugged by Gold’
- ASTER vs HYPE Price Analysis – Which Perp DEX Token Looks Poised to Dominate Q4 Performance?
- Ethereum Price Could Soar to $6,500 as BlackRock’s ETF Nears $20B Milestone
- Cardano Price Consolidates Below Key Resistance Ahead of ETF Verdict — Is a 50% Rally in Sight?
- Solana Price Eyes 56% Rebound Amid Solana Company’s Massive $530M SOL Acquisition
- Ethereum’s Price Bullish Cycle Resumes as Grayscale Launches Spot Staking ETPs – Is $7,331 Next?
- Pi Network Price Risky Pattern Points to Crash as 14M Coins Leave OKX
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
