Overall Net Loss For Coinbase Despite $708 Million Reported In Quarterly Revenue

According to the Q2 report, Coinbase recorded a total revenue of $708 million, experiencing an 8% decrease compared to the previous quarter. The net revenue also declined by 10% Q/Q to $663 million. The company reported a net loss of $97 million and an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $194 million.

Additionally, institutional transaction revenue amounted to $17 million, stemming from $78 billion in institutional trading volume, down 24% and 37% Q/Q, respectively. The decline in revenue was mainly driven by lower trading volumes, although higher realized fees due to changes in trading activity somewhat offset the impact.

Despite the decline, Coinbase outperformed the crypto spot market, which experienced a 48% Q/Q decline, and the company managed to gain market share. Coinbase also bolstered its balance sheet, increasing its USD resources to $5.5 billion, a Q/Q rise of $156 million. These resources include cash, cash equivalents, the USDC stablecoin, and custodial account overfunding.

Looking ahead, Coinbase expects its Q3 revenue to be largely consistent with its Q2 outlook, with subscription and services revenue possibly reaching at least $300 million. The company attributes this consistency to the absence of significant changes in the crypto market cap and its on-platform assets. Coinbase also stated that its withdrawal of staking services in certain states would not have a material impact on revenue.

Furthermore, Coinbase highlighted the forthcoming public launch of its Layer 2 network, Base, on August 9th. The launch aims to enable faster, more secure, and cost-effective transactions. The company has received significant interest from developers across various sectors. Over 50 brands, including Coca-Cola, Atari, and the NFT marketplace OpenSea, will be celebrating the launch with NFT mints and other activities.