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While Coinbase reported 9 million monthly transacting users during Q2 2022, the company recorded 9.2 million in the previous quarter. Notably, the numbers exceed analysts’ estimates of 8.7 million.
Coinbase Global Inc (NASDAQ: COIN) reported more than a $1 billion net loss in Q2 2022, causing the company’s shares to drop 5.45% in after-hours trading. During the quarter, the loss per share was $4.98, exceeding analysts’ expectation of a $2.65 loss per share. Coinbase added that revenue for Q2 2022 was $808.3 million, lower than the $832.2 million expected by analysts.
In the quarterly report, the crypto company said it had a $1.1 billion net loss compared to a recorded $1.59 billion net income in the same period in 2021. Coinbase explained the factors that led to the significant loss. In a letter to shareholders, the company said one factor was a $377 million noncash crypto-related impairment charge. The crypto crash that occurred during the second quarter had a huge impact on Coinbase. The company’s crypto assets plunged from about $1 billion in March, ending to $428 million in June. A large percentage of the decline came from its Bitcoin assets, about 40% of the entire crypto asset portfolio.
Commenting on the Q2 2022 performance, Coinbase stated:
“We continue to take a long-term view and remain focused on building for the future. Q2 was a test of durability for crypto companies and a complex quarter overall. Dramatic market movements shifted user behavior and trading volume, which impacted transaction revenue, but also highlighted the strength of our risk management system.”
Coinbase Announces Q2 2022 Results
However, the company has a bright spot in its monthly transacting users during the period. The figures somewhat remain steady at around 9 million. While Coinbase reported 9 million monthly transacting users during Q2 2022, the company recorded 9.2 million in the previous quarter. Notably, the numbers exceed analysts’ estimates of 8.7 million.
During the last quarter, Coinbase shares dropped 75% as Bitcoin shed around 59%. The crypto company has fallen over 65% between January and now and has plummeted 68.51% in the last twelve months. However, the crypto exchange has gained 65.17% over the past month and 8.50% in the last five days.
The company suffered a blow to its reputation as the Department of Justice (DOJ) announced that it had arrested one of its former employees. The DOJ said the employee is under investigation on the accusation of insider trading. Also, the SEC claimed that at least nine digital assets on the crypto platform are unregistered. According to the financial watchdog, the exchange lists securities on its platform, including Rari Governance Token (RGT) and eight others.