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Coinbase posts wider Q2 GAAP loss even as trading market share hits record
Coinbase said a 25% quarter-over-quarter drop in spot trading volume, lower volatility, and weaker crypto prices hurt transaction revenue.
Coinbase reported mixed second-quarter results, missing Wall Street expectations for profitability even as it captured a record share of global crypto trading volume. The company posted roughly $1.2 billion in net revenue, broadly in line with expectations but down 19% from a year earlier, according to Cointelegraph.
Coinbase recorded a GAAP net loss of $359 million, far wider than analysts had expected for a roughly $122 million loss. The exchange also said transaction revenue, subscription and services revenue, and adjusted EBITDA came in below consensus estimates.
Coinbase reported transaction revenue of $599 million, below the $636 million expected by analysts, and subscription and services revenue of $555 million, short of a $590 million consensus estimate. The company attributed the declines to weaker consumer and institutional trading activity, alongside a 25% quarter-over-quarter drop in total crypto spot trading volume, lower market volatility, and weaker crypto prices, Cointelegraph reported.
Despite the earnings miss, Coinbase reached an all-time high 10.3% share of global crypto trading volume, up from 9.1% in the first quarter. Cointelegraph said the company is continuing to expand its business beyond spot trading into derivatives, prediction markets, tokenized assets, and payments.