Coinbase Posts Third Straight Loss as Crypto Volumes Remain Soft

Crypto trading volumes fell in the April-to-June quarter, and Coinbase felt the effects. The US crypto exchange posted its third straight loss as revenue slid 18.5% to $1.22 billion.

Coinbase relies heavily on transaction fees, which dropped by 21% from a year earlier to $599 million due to softer trading volumes. Its newer business lines, including custody and staking services, couldn't offset the decline in revenue, falling 12.2% to $555.1 million.

The company's fixed costs, such as technology and security expenses, didn't decrease with the drop in trading activity. This led to a loss of $359.5 million for Coinbase at the end of the quarter.