Coinbase shares crash after billion-dollar loss report

The operator of the largest cryptocurrency exchange in the United States, Coinbase Global Inc., suffered a loss in the second quarter of 2022 amid falling trading volumes. The company's net loss in the period from April to June was $1.09 billion (or $4.98 per share) against a profit of $1.61 billion (or $6.42 per share) a year earlier.

The EBITDA loss amounted to $151 million, whereas a year earlier the indicator was positive – $1.15 billion. 

The company's revenue amounted to $808.3 million against the expected $832.2 million, falling by almost 64% amid the exit of investors from the cryptocurrency market and the depreciation of digital currencies. Revenue from retail transactions amounted to $616.2 million, which is 66% lower than the consensus forecast of analysts ($667.1 million).

Coinbase's own cryptocurrency assets were worth $428 million at the end of June, compared with about $1 billion at the end of March.

After the release of the reports, Coinbase shares fell in price by 5.5% during additional trading on Tuesday, and the quotes ended the main session with a fall of 10.6%. Since the beginning of the year, the company's capitalization has collapsed by two-thirds and is now about $ 21.75 billion.

In addition to publishing the reports, Coinbase also presented its updated forecast for the whole year. Now it is expected from 7 to 9 million users making monthly transactions, while three months ago the company's analysts expected that this figure would be in the range of 5-15 million users.