Crypto Winter for Coinbase while Bitcoin jumps 6% on inflation news
Coinbase’s IPO in April of last year marked a first peak for the 2021 crypto market. Things have clearly been going downhill since then. From greater than anticipated competition from other platforms (think Binance) to scandals surrounding top executives selling stock options, the San Francisco company saw it’s share price plummet.
This Tuesday after announcing their second quarter earnings, Coinbase lost another 10% (In July it also plummeted 20% when a former Coinbase employee was accused of insider-trading). The Times, Satoshi’s favorite newspaper, spoke of ‘crypto winter’ for Coinbase. Yesterday, as inflation in the US subsided, the stock jumped back up a good 7% (Bitcoin also jumped 6% on the news, Ethereum even went 12% higher at the time of writing).
Last week a newly minted deal with Blackrock, the Wall Street asset management company that holds a few trillion AUM (assets under management) brought some respite for the stock. This week, as Coinbase announced abysmal earnings, it’s back to the bottom apparently.
Crypto exchange giant Coinbase has cited a “fast and furious” downturn of the crypto markets as the reasons behind a staggering $1.1 billion net loss in the second quarter of 2022, which also saw trading volume and transaction revenue tumbling. pic.twitter.com/2aDGBYoYTA— CRYPTO UNIVERSE (@cryptovc7) August 10, 2022
Net loss of a billion
The Brian Armstrong company posted a net loss of $1.09 billion for the second quarter, although the board remains optimistic about the company’s long-term future, explaining in the shareholder letter than despite “macroeconomic conditions and shocks to the crypto credit environment,” they remain “as bullish as ever on the future of this technology.”
Coinbase is an all-weather company with experience in navigating through crypto-asset price cycles. We continue to take a long-term view and remain focused on building for the future.
Wall Street investors however might be losing their patience.