Connect with us

Tech

Coinbase Shares Drop On Billion-Dollar Loss In Second Quarter And Revenue Miss

Avatar of Arsi Mughal

Published

on

Coinbase Shares Drop On Billion-Dollar Loss In Second Quarter And Revenue Miss

(CTN News) – The crypto exchange reported a loss of over $1 billion in its second quarter and missed analyst revenue estimates. Shares of Coinbase dropped in extended trading on Tuesday.

As a result, the company did the following:

Earnings: Loss of $4.98 per share, versus analysts expectations of $2.65 per share, according to Refinitiv.
Revenue: Analysts expected $832.2 million, but Refinitiv found $808.3 million.

As investors exited the crypto market after last year’s dramatic run, Coinbase’s revenue declined nearly 64%.

According to StreetAccount, retail transaction revenue was $616.2 million, down 66% from the consensus of $667.1 million.

According to a letter to shareholders, Coinbase reported a $1.1 billion net loss, down from $1.59 billion last year.

A $377 million impairment charge related to cryptocurrency was one of the factors. In June, Coinbase’s own cryptocurrency assets were worth $428 million, down from about $1 billion in March.

Bitcoin accounted for over 40% of cryptocurrency assets.

Crypto companies’ durability was tested in Q2 and it was a complicated quarter overall, according to the letter.

“Trading volume and user behavior shifted dramatically, which affected transaction revenue, but also highlighted our risk management program.”

During the period, 9 million people transacted monthly, down from 9.2 million in the first quarter, but higher than the StreetAccount consensus of 8.7 million.

Trading volume was lower during the quarter due to macroeconomics and cryptocurrency credit.

Market conditions are forcing Coinbase to resize its business.

Bitcoin’s price plunged by about 59% during the second quarter because of controversies surrounding cryptocurrency. Coinbase is extending its hiring freeze and cutting 18% of its headcount.

According to Coinbase, assets on the platform fell to $96 billion from $256 billion due to pressure on cryptocurrency prices.

Related CTN News:

5 Major Things to know before Monday’s Stock Market Open
Google Stock Drops On Earnings Miss: TikTok Emerges as YouTube Rival
Continue Reading