Crypto Exchange Coinbase Reports Q2 Net Loss Of $1.1 Billion

Coinbase’s (COIN) stock is down 6% after the cryptocurrency exchange reported a second quarter net loss of $1.1 billion U.S.

The company announced an earnings per share (EPS) loss of $4.98 U.S. versus a loss of $2.65 U.S. per share that was expected on Wall Street, according to Refinitiv data. Revenue in Q2 came in at $808.3 million U.S. compared to $832.2 million U.S. that was expected by analysts.

Coinbase’s revenue in the April through June period declined 64% as investors continue to exit the cryptocurrency market. Retail investor transactions during Q2 were down 66% and below the $667.1 million U.S. consensus of analysts.

Coinbase’s cryptocurrency assets at the end of June stood at $428 million U.S., down from $1 billion U.S. at the end of March this year. Over 40% of the company’s crypto assets are held in Bitcoin (BTC).

Coinbase said it had nine million monthly transacting users during the second quarter, down from 9.2 million in the first quarter.

The company also provided an update to its outlook for the year, saying it now expects seven million to nine million monthly transacting users, down from a previous range of five million to 15 million.

Coinbase’s stock is down 65% this year and trading at $87.68 U.S. per share.