Coinbase Q2 profit misses estimates despite record crypto market share
The crypto exchange blamed softer spot trading and low volatility for the earnings miss while highlighting growth in derivatives, stablecoins and tokenized finance.
Crypto exchange Coinbase reported mixed second-quarter results on Thursday, missing Wall Street expectations on profitability as weaker trading activity weighed on results despite the company capturing a record share of the crypto market.
In the second quarter, Coinbase generated roughly $1.2 billion in net revenue, broadly in line with expectations but down 19% from a year earlier. The company reported a GAAP net loss of $359 million, significantly wider than analysts’ expectations for a roughly $122 million loss. Transaction revenue, subscription and services revenue, and adjusted EBITDA also fell short of consensus estimates.
Despite the losses, the exchange posted an all-time-high 10.3% share of global crypto trading volume, up from 9.1% in the first quarter, even as industry-wide trading activity weakened.