Coinbase Stock Sinks on Weaker-Than-Expected Q2 Results

Coinbase's stock took a hit on Friday after the company posted weaker-than-expected second-quarter results. The crypto exchange's revenue of $1.22 billion missed Wall Street estimates, driven by a decline in crypto trading volumes.

The company's net loss came in at $359.5 million, compared to analyst expectations of $120.7 million. This marks the latest sign that Coinbase is struggling with the effects of 'crypto winter', which has seen transaction revenue fall compared to the same period last year.

Coinbase CEO Brian Armstrong attributed the decline in spot trading volume to a 38% drop, but noted that growth in derivatives and prediction markets trading helped offset some of this loss. He also highlighted that about 88% of Coinbase's net revenue now comes from something other than Bitcoin spot trading fees.