The cold crypto winter rages on as Coinbases (COIN, $87.68) latest earnings indicate. Its shares dropped by 10.5% on Tuesday after the crypto exchange reported a loss of over $1 billion in the second quarter and missed analysts' estimates for revenue. It reported net revenues of $802.6 million and a loss of $4.98 per share, vs loss of $2.65 per share as expected by analysts, according to Refinitiv. In addition, Coinbase reported a $1.1 billion net loss, compared with $1.59 billion in net income in the same quarter last year.
Coinbase's revenue declined nearly 64% as investors exited the crypto market after last year's dramatic run. Retail transaction revenue came in at $616.2 million, down 66% and below analysts' $667.1 million consensus. From the beginning of April to its trough on June 18, the total market capitalization for all crypto assets dove by 63%, from $2.15 trillion to $802 billion. 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%.
Why it matters
Coinbase's stock has plunged since its IPO last year as the crypto and equity market rout prompted a slowdown in retail trading, forcing the company to slash jobs and focus on controlling costs. Despite this, it's pushing back against the headwinds after announcing a major tie-up with Blackrock (BLK, $696.51) just last week.
