Coinbase shares slide as revenue and earnings miss despite record market share
Shares in Coinbase Global Inc. fell more than 5% in extended trading today after the cryptocurrency exchange missed Wall Street targets on both revenue and earnings, with falling token prices and multi-year lows in volatility gutting its trading business.
For its second quarter that ended on June 30, Coinbase reported an adjusted loss of 40 cents per share, down from adjusted earnings of 12 cents per share in the same quarter a year earlier, on revenue of $1.22 billion, down 19% year-over-year. Analysts had been expecting a loss of 11 cents per share on revenue of $1.32 billion. On an unadjusted basis, the company lost $359.5 million, or $1.36 per share, compared with net income of $1.43 billion, or $5.14 per diluted share, in the same quarter last year.
Transaction revenue of $599 million dropped 21% sequentially and 22% year-over-year. Consumer transaction revenue fell 20% to $452 million on a 24% decline in consumer spot trading volume, while institutional revenue slid 26% to $100 million. Total market crypto spot trading volume was down 25% quarter-over-quarter and total crypto market capitalization fell 11%, with double-digit declines in Bitcoin, Ether and Solana.
