Coinbase Global Inc. posted a $1.1 billion loss and lower-than-expected revenue as the largest US cryptocurrency exchange was battered by tumbling digital-asset prices.
Shares of the company, which were first listed last April, dropped about 4% after the close of regular trading. Coinbase has slumped 65% so far this year amid what has been labeled as the latest “crypto winter.”
Revenue declined to $808.3 million, missing the $854.8 million estimate from analysts polled by Bloomberg. Monthly transacting users dropped to 9 million in the second quarter, a 2% decline from prior quarter.
Coinbase lost $1.1 billion in the three months ended June 30, including a $446 million non-cash impairment charges related to investments and ventures, making it the largest amount since it became a public company. Prices of many popular cryptocurrencies reached a more than 18-month low in June in the wake of the collapse of the Terra-Luna ecosystem and the bankruptcy of industry powerhouses such as Three Arrows Capital. A broader sell-off of speculative assets across global markets has weighed on demand from individual investors, the biggest customer base for the firm.
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