Top-notch crypto exchange, Coinbase revealed a $1.1 billion loss in the second quarter in its earning call report. The report clearly states that the platform failed to meet expectations of analysts.
The slump in Coinbase’s share was seen after the news came out.
The report revealed that Coinbase’s trading volume also declined to $217 billion, which is 30% less than post-quarter (Q1). Apart from this, the platform has also seen a 3% fall in its crypto spot trading volume.
According to a report, Coinbase generated $803 million in revenue in the second quarter, which includes $655 million in transaction revenue and $147 million came from subscription and service revenue.
In Q2, Coinbase’s transaction revenue plunged by 35% compared to Q1, while subscription and services revenue was 3% down.
The revenue generated from services and transactions were spent on different operations such as sales and marketing, Technology & Development, and General & Administrative as well as paying remuneration to the workforce.
Also Read: Coinbase CEO Lays Off 18% Employees Fearing a Crypto Winter
The report stated that total operating expenses of Q1 were $1.9 billion, which was 8% up to the subsequent quarter.
All in all, Coinbase’s quarterly revenue turned down to a $1.1 billion loss that includes $440 million in total non-cash impairment charges in its crypto investments and venture investments. Other losses that penetrated Coinbase’s revenue came from Subscription and services revenue, Blockchain rewards revenue, Custodial fee revenue, and others.
However, in spite of extremely unpleasant statistics, Coinbase CEO Brian Armstrong stated that the company is not striving for profit. Their main focus is on the staking.
“Any given quarter it could be up or down,” he said of the crypto market on Coinbase’s earnings call. “It’s important to distinguish between what is in our control and what’s out of our control.”
Coinbase has listed staking in its product prioritization list to become the #1 staking provider in the crypto market.
Ethereum Merge is expected to occur next month that will transit its consensus mechanism into proof-of-stake. Recently, Coinbase Prime introduced Ethereum Staking to US domestic institutional clients.
