UPDATE 1-Crypto exchange Coinbase posts loss as trading volumes plunge

  • In Business
  • 2022-08-09 20:25:58Z
  • By Reuters

(Adds trading volumes, share movement, background)

Aug 9 (Reuters) - Coinbase Global Inc reported a loss for the second quarter on Tuesday, hurt by a plunge in trading volumes as this year's rout in risky assets curbed investor appetite for trading in cryptocurrencies.

Shares of the company were down 6% in extended trading.

Investors have dumped speculative assets from stocks to crypto this year on fears that aggressive central bank policy tightening could tip the U.S. economy into a recession.

That has sent bellwether token bitcoin lower and forced several companies in the sector including Coinbase - which earns the bulk of its revenue from trading fees - to cut jobs.

Trading volumes slowed to $217 billion in the second quarter ended June 30, from $462 billion a year earlier when crypto's march to the mainstream attracted interest from traders.

Coinbase posted a net loss of $1.09 billion, compared with a profit of $1.61 billion a year earlier.

One of the largest cryptocurrency exchanges in the world, Coinbase has seen its market valuation decline more than 60% so far this year. (Reporting by Mehnaz Yasmin in Bengaluru; Editing by Aditya Soni)


Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


Top News: Business