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Coinbase posts largest quarterly net loss since its listing on the NASDAQ
Coinbase (NASDAQ: COIN) on Tuesday released its Q2 results that showed a staggering $1.1 billion net loss, which is the largest net loss the crypto exchange has registered since it was listed on the NASDAQ Stock Exchange in April 2021.
Commenting on the loss, Coinbase cited a “fast and furious” crypto market meltdown as the main reason for the huge net loss. There have also been other factors like the recently launched investigation into the crypto exchange by the US Securities and Exchange Commission (SEC) in July.
The results, which were shared in a Q2 2022 Shareholder Letter from Coinbase, stated:
“The current downturn came fast and furious, and we are seeing customer behavior mirror that of past down markets.”
The crypto exchange also registered a reduction in trading volume and transaction revenue over the same duration. The trading volume dropped by 30% while the transaction revenue dropped by 35%.
Consecutive losses for CoinbaseDespite being the biggest quarterly loss for Coinbase, this year’s Q2 net loss marks the second consecutive quarterly loss that the exchange is making since listing on NASDAQ.
Tuesday’s results also missed analyst expectations.
The crypto exchange registered $802.6 million in revenue, which is a 45.1% drop from the previous quarter and an astounding 153.1% drop from the 2021 Q2 results. The net loss that amounted to $1.1 billion was mainly due to $446 million in non-cash impairment charges that resulted from lower crypto asset prices in the second quarter.
On the brighter side, Coinbase assured its customers that despite the economic downfall, the crypto exchange is doing its best in adjusting to the fluctuating market conditions.
One of the things that Coinbase has done is cutting down 18% of its employees and taking a “pause, maintain, and prioritize” approach toward product development. Some of the products that the crypto exchange is prioritizing include Coinbase Retail App, Staking, Coinbase Prime, and Coinbase Cloud among other Web3 applications.
Coinbase is also working on a Bored Ape Yacht Club (BAYC)-featured movie and it just released the first part of the movie on July 26.
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