Coinbase stock is down 10% today, down more than 4% in after-hours trading following a tremendous earnings report for the year’s second quarter.
Coinbase underperformed analysts’ expectations, posting $808.3 million in revenue for Q2 compared to an estimated $832.2 million brought in by the cryptocurrency exchange.
The total number of users transacting on the platform stood at 9 million in the past three months, down from 200,000. Compared to the same quarter a year ago, Coinbase showed the same amount of profit, adding 200,000 monthly active users over the course of a year.
The company reported a net loss of ₹1.1 billion in the last financial quarter, the second consecutive quarter of negative earnings. Coinbase net income reached 1.6 billion in the second quarter of last year. Coinbase makes its money on fees paid by users when trading on it Bitcoin and other cryptocurrencies. Trading volume on the exchange was down 29% in Q2.
Coinbase made its Wall Street debut when it was listed on the Nasdaq as the first publicly traded cryptocurrency exchange last April. Its share price at one point soared to $342, but as of this writing, it has dropped more than 74% to just over $87 per share.
While the Securities and Exchange Commission (SEC) gave Coinbase the green light to go public last year, the firm found itself in the regulatory agency’s sights late last month. The SEC claims that the nine tokens are unregistered securities on the exchange, while Coinbase says it does not sell any securities.
The SEC’s determination was disclosed in insider trading allegations made against three individuals, including a former Coinbase project manager with prior knowledge of the token being listed on the exchange. Arch Invest CEO Cathy Wood Said The Company Was So Intense After “Regulatory” Uncertainty parted With $75 million worth of Coinbase shares.
However, Coinbase’s stock price made a sharp upward move last week, fueled by news that it has secured a deal with the world’s largest asset manager, BlackRock. Coinbase will provide the financial titan with cryptocurrency trading technology for institutional investors on its Aladdin platform.
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