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- Analysts had expected Coinbase to bring in $832.2 million in revenue.
- The overall number of people using the platform decreased by 200,000.
Following a disappointing second-quarter earnings announcement, the price of Coinbase shares has fallen by more than 4% in after-hours trading and is down 10% today. Analysts had expected Coinbase to bring in $832.2 million in revenue for the second quarter, but the crypto exchange clocked in at $808.3 million.
Over the previous three months, the overall number of people using the platform decreased by 200,000. Coinbase gained the same number of monthly active users in the most recent quarter as it had in the same period a year earlier, totaling 200,000.
Trouble Continues For Coinbase
In its second consecutive quarter of negative earnings, the corporation reported net losses of 1.1 billion during the most recent fiscal quarter. According to Coinbase’s financial results for the second quarter of last year, the company made 1.6 billion dollars. The fees that customers pay to exchange Bitcoin and other cryptocurrencies generate revenue for Coinbase. The exchange’s trading volume fell by 29% in the second quarter.
Coinbase became the first publicly traded cryptocurrency exchange when it was launched on the Nasdaq in April of last year. Its stock price surged to $342 at one time, but it’s now down 74% to a little over $87 per share.
Coinbase stated in April that it will make its services available to Indian investors. However, after criticism from Indian regulator, the business drastically reduced its trading services within a week.
A year ago, the SEC granted Coinbase the go-light to go public, but late last month the agency reopened an investigation into the company. On Coinbase, SEC alleges there are unregistered securities, but the exchange says it does not sell any.
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