Coinbase and Strategy Stocks Plummet After Weak Q2 Earnings

Crypto exchange Coinbase and Bitcoin treasury firm Strategy both reported weaker-than-expected earnings for Q2, leading to a decline in their respective stock prices. According to Coinbase's press release, the crypto exchange recorded revenue of $1.220 billion in Q2, below estimates of $1.28 billion. The company's earnings per share (EPS) were -$1.36, also below estimates of -$0.42.

Strategy, on the other hand, reported revenue of $122 million, below estimates of $124.48 million. The Bitcoin treasury firm's EPS were -$24.45, well below estimates of $3.07. COIN and MSTR stocks are notably down in after-market trading following the earnings report.

The Coinbase stock is currently trading around $155, down over 5%, according to TradingView data. Meanwhile, the Strategy stock is trading at around $97, down less than 1% in after-market trading. This comes despite MSTR climbing as much as 5% during trading hours today as Bitcoin rallied to $65,000 following the release of soft June PCE inflation data.

Strategy's unrealized loss of $8.32 billion on its Bitcoin holdings contributed to the operating loss of $8.33 billion recorded in the second quarter. The company also realized a loss as it sold some of its BTC holdings in Q2.