Coinbase reports third straight quarterly loss as trading volume falls
Coinbase Global reported its third consecutive quarterly loss as the prolonged slump in the cryptocurrency market weighed on trading volumes, sending the digital asset exchange’s shares down 5.3% in after-hours trading. During the April-to-June quarter, the crypto market came under pressure amid uncertainty over the U.S. interest-rate outlook, geopolitical tensions and continued outflows from crypto investment products, prompting investors to shy away from riskier assets. The weakness extended the pullback that has followed the record high reached last October. Coinbase’s trading revenue fell 21% from $764 million a year earlier to $599 million in the quarter. “This deep and prolonged crypto winter continues to weigh on Coinbase, while the path to regulatory clarity is not happening quickly enough,” said Jacob Zuller, an analyst at Third Bridge. “Tokenized equities and perpetual futures may help offset weakness in spot crypto trading volumes, but Coinbase is behind in both.”