The US-based cryptocurrency exchange Coinbase reduced its
net loss to USD $97 million in the second quarter from USD $1.1 billion in the
same period of last year. However, the company’s net revenue declined 17%
year-over-year to USD $663 million during the quarter.
Coinbase has attributed
the improved performance to a reduction in expenses that resulted from the
company operating efficiently. The company’s operating expenses declined 1%
quarter-over-quarter to USD $664 million. Additionally, the exchange reduced
its staff by 30% year-over-year to enable it to operate more
efficiently.
Besides that, Coinbase
posted an adjusted EBITDA of USD $194 million, an improvement from a negative
EBITDA of USD $151 million reported in the same period last year. However, the
EBITDA reported in the period declined 31% quarter-over-quarter from USD $284
million.
Coinbase’s total
revenue from subscription and services more than doubled year-over-year to USD $335
million in the second quarter. The revenues from the consumer segment were USD
$310 million, which compares to USD $17 million from the institutional segment.
Following the results, Coinbase is projecting its subscription and services
revenue to be at least USD $300 million in the third quarter. Additionally, the
company expects its technology and development, general, and administrative
expenses to range between USD $575-625 million in the next quarter.
Coinbase’s Future
Prospects
“In Q2, we made
further progress toward this bold goal such as expanded access to derivatives
products to customers outside the US, being selected by many leading asset
managers to provide critical infrastructure underpinning their proposed spot
Bitcoin exchange-traded funds (ETFs) products,” the exchange
