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HomeTechnologyCoinbase shares losse $1.1 billion in Q2 2022 earnings report

Coinbase shares losse $1.1 billion in Q2 2022 earnings report

Crypto exchange Coinbase reported a $1.1 billion loss on $803 million in revenue in its Q2 earnings report of 2022 on August 9. Both numbers were lower than what the business reported for the first quarter of the year and underperformed analyst predictions.

Following a disappointing earnings report for the Q2 of the year, Coinbase stock is down 10% on August 10, dropping by more than 4% in after-hours trading. Coinbase’s net income totaled 1.6 billion in Q2 of last year. Coinbase generates revenue by putting charges on the trading Bitcoin and other cryptocurrencies from users. 

According to Coinbase, Q2 trading volume fell by 30 % and transaction revenue declined by 35%. In addition, Q2 adjusted Ebitda was $151 million lower than Q1 adjusted Ebitda (earnings before interest, taxes, depreciation, and amortisation), which had increased by $20 million.

According to Coinbase, non-cash impairment charges resulting from investments in cryptocurrencies and venture capital “heavily impacted” results.

Since its IPO in 2021, Coinbase’s stock has fallen as a result of a slowdown in retail trading caused by the crypto and equity market crashes, which forced the company to cut jobs and concentrate on cost-cutting measures. But despite the current crypto winter, Coinbase keeps working toward becoming a one-stop shop for trading cryptocurrencies.

Last week, Coinbase announced a partnership that enables BlackRock clients to trade cryptocurrencies through it. 

Read more at Cryptoshrypto:

Shareholder lawsuit claims Coinbase executives misled investors over its public listing

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