Coinbase reports loss amid crypto turmoil, shares fall
It has been a volatile year for cryptocurrencies with the bellwether bitcoin losing more than 50% of its value
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Coinbase Global reported a larger-than-expected quarterly loss as trading volumes fell during a volatile quarter for cryptocurrencies.
Shares of the cryptocurrency exchange fell 6% in after-hours trading.
Trading volumes at the cryptocurrency exchange more than halved to $217 billion in the second quarter, with retail participation sinking 68% and institutional trading falling 46%.
The company expects trading volumes in the current quarter to fall further amid the failure of some crypto ventures and volatile financial markets.
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An illustration of the Coinbase logo with cryptocurrency examples. (istock / iStock)
Adjusted loss was $4.76 a share in the quarter, compared with the $2.65 expectation. Revenue fell 63%, missing market expectations.
Operating expenses surged 37%.
Coinbase lowered its annual expenses forecast to between $4 billion and $4.25 billion, from $4.25 billion to $5.25 billion.
Cryptocurrency prices were higher early Monday morning with Bitcoin, Ethereum and Dogecoin all higher by more than 5%. (iStock / iStock)
COINBASE LAYS OFF 18% OF WORKFORCE
That downturn has sent bellwether bitcoin 50% lower in 2022, forced several companies including Coinbase to cut jobs and raised fears of a drop in interest from small traders.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| COIN | COINBASE GLOBAL INC. | 284.72 | -34.41 | -10.78% |
Coinbase said its monthly transacting users fell 2% sequentially to 9 million in the April-June quarter.
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Shares traded at $83 on Tuesday, a sharp discount from the $381 when the shares debuted in April 2021.
Reuters contributed this report.