Site icon Nairametrics

Coinbase posts $1.1 billion loss in Q2 2022, worst since listing on NASDAQ

Citing “fast and furious” downturn of the crypto markets, Coinbase, one of the largest cryptocurrency exchanges in the world by exchange volume, posted a staggering $1.1 billion net loss in the second quarter of 2022, caused by a fall in trading volume and transaction revenue.

It’s the second consecutive quarter of losses for Coinbase and its largest loss since its listing on the Nasdaq Stock Exchange (NASDAQ) in April 2021. The results, which also missed analyst expectations, were shared in a Q2 2022 Shareholder Letter from Coinbase yesterday.

In the shareholder letter, Coinbase stated, “The current downturn came fast and furious, and we are seeing customer behaviour mirror that of past down markets.” Coinbase said that Q2 was a “tough quarter,” with trading volume falling 30% and transaction revenue down 35% sequentially.

On the fall of its trading volume and transaction revenue, Coinbase stated, “Both metrics were influenced by a shift in customer and market activity, driven by macroeconomic and crypto credit factors alike.”

What you should know

Looking ahead, Coinbase said it expects the “soft crypto market conditions” from the second quarter to continue into Q3 2022.

The company said it expects a further fall in total trading volume and average transaction revenue per user, though it said it may see some revenue growth from subscription and service fees. Coinbase’s share price fell 10.55% on Tuesday following the release of its Q2 results and is priced at $87.68 at the time of writing.

Exit mobile version