Coinbase’s Q2 2022 net loss Nears $1.1 Billion with Dramatic Decrease in Trading

On August 10th, Coinbase released its Q2 earnings for 2022, with net income of about $803 million, a decrease of 31% from the previous quarter. In comparison to a net profit of more than $1.6 billion in Q2 of last year, the net loss for the quarter was almost $1.1 billion, an increase of 154% from Q1’s loss of $430 million. 9 million monthly active users, down 200,000 from Q1.

Trading revenue was $655 million, down sequentially by 35%, and total trading volume decreased to $217 billion, down 30% from the first quarter. A reduction in market share of trading volume was caused, in particular, by a 3 percent sequential decline in total cryptocurrency spot trading volume.

At the conclusion of the second quarter, Coinbase assets were $96 billion, down from $256 billion at the end of the first quarter. This contrasts with the trading platform’s total assets of $180 billion in Q2 of 2021.

A $377 million non-cash cryptocurrency-related impairment was one aspect that contributed to the loss. According to the earnings report, Coinbase’s own cryptocurrency holdings were worth $428 million at the end of June, down from approximately $1 billion at the end of March. Coinbase also stated that it had no counterparty exposure to Celsius, Voyager, or Three Arrows Capital.