Tuesday’s extended trading saw a decline in Coinbase shares after the cryptocurrency exchange revealed a second-quarter loss of over $1 billion and revenue that fell short of analysts’ expectations. After the tremendous surge in the cryptocurrency market last year, investors pulled out, causing Coinbase income to drop by about 64%. Retail transaction revenue was $616.2 million, a 66% down from the StreetAccount-surveyed analysts’ consensus estimate of $667.1 million.
According to a letter to shareholders, Coinbase recorded a $1.1 billion net loss as opposed to a $1.59 billion net profit in the same quarter last year. A $377 million non-cash cryptocurrency-related impairment charge was one contributing cause. At the end of June, Coinbase own cryptocurrency holdings were valued at $428 million, down from roughly $1 billion at the end of March. Bitcoin accounted for more than 40% of all cryptocurrency assets.
The business reported that during the period, it had 9 million monthly transactional customers, which was less than the first quarter’s 9.2 million but still higher than the 8.7 million Street Account expectation. The business reported that decreasing trading volume during the quarter was caused by macroeconomic factors and cryptocurrency credit.
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