Coinbase, one of the largest cryptocurrency exchanges on the market presently, has stacked up significant losses, according to its latest trade update.
The company said that it’s running $1bn in losses for the second quarter and also missed the analysts’ forecast for revenue.
Earnings stood at a loss of $4.98 per share, whereas analysts expected a loss that was nearly half of that at $2.65 per share.
Meanwhile, revenue stood at $808.3m compared to $832.2m. Revenue effectively declined by 64% as investors began fleeing the cryptocurrency market, unleashing a series of unfortunate events.
Multiple cryptocurrency lenders and borrowers had to freeze withdrawals, deposits and trades in a bid to hold on to liquidity.
Coinbase’s results continued to take a hit when compared to the same period last year. For the second quarter of 2021, the company boasted $1.59bn in net income, a far cry from the current economic situation.
Cryptocurrency transactions petered out during the second quarter with Bitcoin taking a big hit.
“Q2 was a test of durability for crypto companies and a complex quarter overall. Dramatic market movements shifted user behavior and trading volume, which impacted transaction revenue, but also highlighted the strength of our risk management program”, Coinbase told investors.
Controversies in the cryptocurrency landscape continue to tamper with results with even the biggest companies facing trouble.
Zipmex, Celsius Network and others have all been put under pressure by circumstances leading to crypto withdrawals being frozen. Coinbase was also forced to cut as much as 18% of its workforce in June.