Coinbase: $1.1 billion loss for the crypto exchange

The current situation on the crypto market is causing problems for the Coinbase trading platform. The price of various cryptocurrencies has been falling since the beginning of the year – the industry is talking about a so-called “crypto winter”. Such a winter already happened in 2018, after which the market recovered and experienced an incredible boom. There is currently a downward trend in digital currencies again, which also has an impact on Coinbase shares.

After profit now 1.1 billion US dollars loss

“The current downturn has been rapid and violent,” Coinbase said in a letter to shareholders, adding that weak conditions in the crypto market would continue into the third quarter. In the past second quarter of 2022, a loss of 1.1 billion US dollars was reported. In the previous year, the company had been able to bring in a net profit of 1.59 billion US dollars in the same quarter.

Coinbase’s revenue fell nearly 64 percent year-over-year to last time at $808 million. This also missed the analysts’ estimate of $854.8 million. Total assets on the platform fell 63 percent to $96 billion. The company’s stock fell 5 percent in after-hours trading.

In June it was announced that Coinbase would have to lay off around 18 percent of its workforce. The company has grown significantly over the past two years, according to co-founder and CEO Brian Armstrong. In order to save costs, however, one must now downsize. A good 1,100 employees are now said to lose their jobs.

Source: Bloomberg, Business Insider, golem