Coinbase Misses Profit Expectations Amid Weakened Crypto Market

Coinbase reported mixed second-quarter results on Thursday, missing Wall Street expectations on profitability despite capturing a record share of the crypto market.

The company generated roughly $1.2 billion in net revenue, broadly in line with expectations but down 19% from a year earlier.

Coinbase posted an all-time-high 10.3% share of global crypto trading volume, up from 9.1% in the first quarter, as industry-wide trading activity weakened.

The exchange attributed the decline in transaction revenue to weaker consumer and institutional trading activity amid a 25% quarter-over-quarter drop in total crypto spot trading volume, lower market volatility, and weaker crypto prices.