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Coinbase posts $359M Q2 net loss as trading volumes fall
Second-quarter revenue was $1.22B, down 14% from the prior quarter, while crypto spot trading volume dropped more than 20%.
Coinbase reported $1.22 billion in second-quarter revenue and a net loss of $359 million, missing earnings expectations of $1.29 billion, Decrypt reported.
The exchange said subscription and services revenue totaled $555 million, equal to 48% of net revenue, but transaction revenue fell to $599 million versus an expected $628 million.
Coinbase attributed weaker transaction revenue to USDC-related commercial agreements closing later than expected and to lower crypto asset prices that reduced staking revenue, Decrypt reported. It also said stablecoin revenue was $292 million, and average USDC held across its products rose to a record $20 billion during the quarter.
Despite the earnings miss, Coinbase reported that its crypto trading market share reached a record 10.3% for the quarter, its third consecutive quarter of gains, and that prediction markets contracts and revenue grew 106% from the previous quarter.
Decrypt also noted that average borrow-lend balances increased by more than $1 billion from a year earlier to $1.49 billion, and that Coinbase said conditions for its commercial agreement with Circle to renew in August automatically had been met.