Coinbase reports more than $1bn loss in Q2
Coinbase reports more than $1bn loss in Q2
- 5517
- 2 min.
- 7 connections
flickr.com
The company's results
Coinbase (NASDAQ: COIN) quarterly report showed a drop on users, trading volumes and market share. The crypto-exchange is clearly in crisis. Coinbase gave a pessimistic outlook, despite its partnership with BlackRock.
The second quarter of 2022 was the worst quarter in history and another test of strength for Coinbase and the crypto industry as a whole.
It is worth noting that cryptocurrency prices fell as the world's economic macro environment deteriorated significantly, reducing demand for risky assets.
The entire sector was hit hard in November after firms such as Celsius Network LLC and Voyager Digital Holdings filed for bankruptcy protection. More than 20 smaller exchanges closed. Earlier this week, two other publicly traded cryptocurrency companies, Galaxy Digital Holdings and Marathon Digital Holdings, reported larger losses than a year ago.
The problems worsened in early May when a so-called stabelcoin called TerraUSD and its sister cryptocurrency Luna collapsed.
Coinbase shares have lost 65.3 per cent since the start of the year, stronger than the average market decline. The S&P 500 index has fallen 13.7% since the start of 2022.
Many on Wall Street are lowering their forecasts for Coinbase stock today. This week analysts downgraded them to 'outperform' and a target price of $100 a share after experts downgraded them to 'neutral and $54 last month.
Report from Coinbase
Loss per share rose to $4.98, worse than analysts' forecast of $2.47.
Coinbase reported a 64% drop in revenues to $808 million, below analysts' average estimate of $874 million.
Monthly transactional users fell to 9mln in the Q2, down 2% from the previous quarter.
Trading volume also fell short of estimates, with total assets on the platform falling 63% to $96bln.
Operating expenses of $1.9bln were up 8% from the first quarter.
Moreover, as noted, the company is also facing increased competition, which could force it to cut fees, especially for retail investors. Just on Tuesday, Interactive Brokers said it was expanding its cryptocurrency trading offerings. Binance.US cut fees for some crypto transactions to zero in June.
Companies7 in the news
Related news
Last news
Companies rating
NEW YORK NEWS
News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova Development Director
Quotes
AllChris Olsen Addresses Meghan Trainor Feud Rumors and Friendship Status
John Malkovich Wins Best Actor at Venice Film Festival Amid Oscar Buzz
Jimmy Kimmel Slams FCC ‘Threats’ as White House Fires Back
BBC Line of Duty star Martin Compston teases new series and says 'this is the end'
Game of Thrones’ Maisie Williams Addresses Arya Stark Spinoff Rumors and Possible Return
