Coinbase Posts Surprise Loss Amid Slumping Crypto Trading Volume
Coinbase posted a surprise loss in its Q2 earnings, with revenue falling short of expectations and net losses totaling $359 million. The company cited a decline in crypto spot trading volume, which dropped by over 20% from the previous quarter, as well as lower staking revenue due to falling prices.
Despite missing analyst estimates for both revenue and profit, Coinbase pointed to some positive trends, including stablecoin revenue reaching $292 million and prediction-market revenue more than doubling quarter-over-quarter. The company also noted that 88% of its net revenue now comes from sources other than Bitcoin spot trading, up from 45% in 2020.
Shares of COIN stock fell around 5% after hours following the release of the earnings report. Meanwhile, rival Robinhood posted a record profit in Q2 despite also seeing a decline in crypto trading revenue.