Coinbase Swings to 2Q Loss on Weak Crypto Market

By Elias SchisgallCoinbase Global swung to a loss for the second quarter in a row as the company grapples with a softer cryptocurrency market.The cryptocurrency exchange on Thursday reported a loss of $359.5 million, or $1.36 a share, compared with a profit of $1.43 billion, or $5.14 a share, a year earlier. The new loss includes a $209.5 million loss on the value of Coinbase's crypto assets held for investment.Revenue fell 19% to $1.22 billion, missing analyst estimates for $1.29 billion.The revenue decline was driven by a weakness in the broader cryptocurrency market, Coinbase said. It noted that the total crypto market capitalization fell 11% and total crypto spot trading volumes slid 25% from the previous quarter.The company's second-quarter subscription and services revenue came in at $555 million, down 12% year over year below its forecast of between $565 million and $645 million. Transaction revenue fell 22% to $559.2 million.Shares in Coinbase fell 5.6% to $154.36 in after-hours trading on Thursday. The stock closed up 2.2% at $163.58, down 28% this year.For the current third quarter, the company said it expects subscription and services revenue between $500 million and $580 million. It said that transaction revenues during the third quarter were at roughly $130 million as of Sunday.Coinbase in May said it would lay off about 700 employees as part of a cost-cutting and streamlining effort. On Thursday, it said it was cutting its guidance for full-year adjusted expenses by $100 million at the midpoint, citing results from the restructuring actions.Write to Elias Schisgall at [email protected]