Coinbase Posts Losses

Cryptocurrency giant Coinbase posted a staggering $1.1 billion loss for the second quarter of 2022.

In a shareholder letter for the second quarter of 2022, Coinbase reported total revenue of $802.6 million for the second quarter, a shocking 153.1 percent decrease from the same quarter last year and a reduction of 45.1 percent from the previous quarter. Its net loss of $1.1 billion was primarily due to $446 million in non-cash impairment charges brought on by lower prices for crypto assets. 

Coinbase revealed that the company’s trading volume fell by 30 percent, which subsequently led to a 35 percent loss in its transaction revenue.

“Both metrics were influenced by a shift in customer and market activity, driven by macroeconomic and crypto-credit factors alike,” wrote Coinbase.

In order to reduce costs and increase profit margins, Coinbase laid off 18 percent of its workforce in June and has prioritized “pause, maintain, and develop” as its product development strategy.

“Overall, it will take some time to fully realize the financial impact of our actions, but we have lowered our full-year expense range for Technology & Development and General & Administrative expenses,” said Coinbase.

The Coinbase Retail App, Coinbase Prime, Staking, Coinbase Cloud, and other Web3 applications are among the projects that are being given priority by the company.

Coinbase has lost money for the second quarter in a row, recording its biggest loss since it was listed on the Nasdaq Stock Market in April 2021.

Following the disclosure of its second quarter data on Tuesday, the price of Coinbase’s stock dropped 10.55 percent, and it is currently trading at $87.68.

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