America’s largest cryptocurrency exchange Coinbase has revealed a massive loss in both revenue and profit in the June quarter. The crypto exchange mentions $1.1 billion in a net loss as revenue dropped from $2.033 billion to $803 million from a year-ago quarter which is a drop of nearly 60%.
In quarterly terms, the net revenue of Coinbase was down 31 percent compared to Q1, driven by lower trading volume.
Coinbase reports on loss
On Tuesday, the company reports that Q2 was a tough quarter, with trading volume and transaction revenue down by 30 percent and 35 percent sequentially, respectively. Both metrics were affected by a shift in customer and market activity, driven by macroeconomic and crypto credit factors alike.
The exchange refers to an 18 percent employee reduction in June and says that on the expense side, they have taken several steps to streamline their cost structure.
Further, they also mention that the current downturn came fast and furious, and they are seeing customer behavior mirror that of past down markets.
Total trading volume plunged to $217 billion, down 30 percent in comparison with Q1. On the other hand, total crypto spot trading volume fell 3 % on a sequential basis. This resulted in a lower trading volume market share.
Coinbase said that Q2 was a test of durability for crypto companies and a complex quarter overall. Dramatic market movements diverted user behavior and trading volume, which impacted transaction revenue, but also emphasized the strength of their risk management program.
Despite the losses registered, the company remarked that it managed to achieve some remarkable figures amid distasteful market conditions. They noted that subscription and services revenues were up by 44 percent while the net loss was heavily impacted by non-cash impairments.
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