Coinbase recorded a loss twice as high as forecasts

Coinbase’s net loss in the second quarter of 2022 amounted to $ 1.1 billion or $ 4.98 per share, which doubled the expectations of analysts ($ 2.47). In the post -trade session, securities fell by 8% after losses by 10.55% of the main.

OUR Q2’22 Financial Results are in.

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– Coinbase (@coinbase) August 9, 2022

For the same period of 2021, Coinbase recorded a net profit of $ 1.6 billion, in the first quarter of 2022 – a loss of $ 429.7 million.

Pure revenue in April June decreased from last year’s $ 2.03 billion to $ 803 million. This is due to a decrease in prices for digital assets – the volume of trading on the platform amounted to $ 217 billion against $ 462 billion. The number of those who have made at least one transaction within a month of traders increased from 8.8 million to 9 million. The value of assets fell from $ 180 billion to $ 96 billion.

Trade commissions formed 82% of pure revenue. The remaining part came on income combined into the category of subscriptions and services.

Coinbase is still largely dependent on retail traders. For this category of market participants, $ 616 million out of $ 655 million revenues from trading commissions.

“Dramatic changes in the market influenced revenues from transactions, but also emphasized the strength of our risk management program. We focus on priorities and more rigidly control the costs. […] Coinbase still focuses on the long-term perspective and focused on building the future “, – The letter says to shareholders.

From the moment of IPO, Coinbase https://gagarin.news/ securities have fallen in price by 77%.

Recall that in July, Ark Invest Katie Wood got rid of Coinbase shares for $ 75 million. The decision was made against the background of information on the investigation of the SEC activity of the Bitcoin-Birzhi.

On July 21, the US Ministry of Justice announced the arrest of the former Coinbase Product Manager, Ishan Vakhi. He was accused of fraud using insider trade. The defendants of the case are also the brother of Wahi and Samir Ramani.

SEC filed a lawsuit against suspects with similar theses and emphasized that we are talking about fraud with securities. So the agency classified 9 out of 25 cryptocurrencies, which the defendants suggested in their operations.

Recall that the assistant to US Senator Cynthia Lammis told reporters that the SEC has begun studying each cryptocurrency exchange registered in the country. According to him, an investigation against Coinbase is the tip of the iceberg.

In August, Coinbase agreed to cooperate with BlackRock. Customers of the latter will receive direct access to digital asset trading through the Aladdin portfolio control system .

Also recently, Bitcoin-Birzha opened the possibility of Ethereum stake for institutional customers.

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