NASDAQ-listed cryptocurrency exchange Coinbase posted expectedly poor results in its second-quarter earnings call on Wednesday August 9.
The exchange lost 200,000 active users, a tapering off of the two million exits seen in the first quarter, while net losses came to US$1.1bn.
Trading volumes fell sequentially by almost a third, shored up slightly by Coinbase’s substantial institutional investor base.
While losses were significant in almost all metrics, they were largely in line with company guidance that struck a pragmatic tone in the face of a savage crypto bear market.
Coinbase reiterated its long-term outlook as a way to fending off negative market sentiment.
“Despite crypto market capitalization declining $1.3tn or ~60% in Q2… we remain as bullish as ever on the future of this technology. Coinbase is an all-weather company with experience in navigating through crypto asset price cycles. We continue to take a long-term view and remain focused on building for the future,” the company stated.
Uptick in non-investing activities
Coinbase sought to diversify into non-investing products this quarter by offering staking options on Solana and Cardano.
Approximately 67% of monthly transacting users flocked to these non-investing products, although revenues generated in the segment are substantially lower than trading activities.
Forward guidance expect more of the same, further customer losses and lower trading volumes expected in the second half of 2022.
COIN shares fell 10% in response to the earnings.