Coinbase’s second-quarter 2022 net loss was $1.1 billion, or $4.98 per share, double analysts’ expectations ($2.47). In the post-trading session, securities fell 8% after losing 10.55% in the main session results.

Our Q2’22 financial results are in.

Check out our letter to shareholders 👇https://t.co/RuDx4bPADb

— Coinbase (@coinbase) August 9, 2022

For the same period of 2021, Coinbase posted a net profit of $1.6 billion in the first quarter of 2022 – a loss of $429.7 million.

In the April-June period, net income fell to $803 million from $2.03 billion last year. This is due to the decline in the prices of digital assets – trading volume on the platform reached $217 billion against $462 billion. a transaction in the month rose from 8.8 million to 9 million The value of assets fell from $180 billion to $96 billion.

Trading commissions accounted for 82% of net income. The remainder came from revenue grouped under the subscriptions and services category.

Coinbase is still heavily dependent on retail merchants. This category of market participants accounted for $616 million of the $655 million in trading commission income.

“Dramatic changes in the market affected transaction revenues, but also highlighted the strength of our risk management program. We focus on priorities and manage costs more tightly. […] Coinbase remains focused on building the long-term and future.” writes a letter to shareholders.

Since public offering Coinbase securities fell 77%.

Recall that in July, ARK Invest got rid of Kathy Wood’s Coinbase shares for $ 75 million. The decision was made on the background of information about the investigation. SEC Activities of the Bitcoin exchange.

On July 21, the US Department of Justice announced the arrest of former Coinbase product manager Ishan Wahi. He was accused of committing fraud using insider trading. The defendants in the case are Vahi’s brother and Samir Ramani.

The SEC emphasized that we are talking about securities fraud by filing lawsuits against suspects with similar arguments. Thus, the agency classified 9 out of 25 cryptocurrencies that the defendants allegedly used in their operations.

Recall, an aide to US Senator Cynthia Lummis, told reporters that the SEC has begun scrutinizing every registered cryptocurrency exchange in the country. According to him, the Coinbase investigation is the tip of the iceberg.

In August, Coinbase agreed to cooperate with BlackRock. Clients of the latter will have direct access to digital asset trading through a portfolio management system. Aladdin.

Also recently, the bitcoin exchange has opened up the possibility of staking Ethereum for institutional clients.

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