After the announcement that Coinbase had been selected by BlackRock, many thought that the worst was behind them. Alas, the company came to shatter this dream by announcing a loss of 1.04 billion dollars for the 2nd quarter of 2022!
Is Coinbase stock a shitcoin?
Since its IPO Coinbase has lost nearly 72.47% of its value. A fall that can not only be attributed to the context of the crypto market, inflation and war.
Following the announcement a week ago of its partnership with BlackRock (editor’s note: the investment fund monster), the stock has recovered. Unfortunately, the company nipped the hopes of optimists in the bud by announcing its Q2 2022 results…
Coinbase sees its revenues fall by 60
At the beginning of 2022 the company had already announced a net loss of nearly $430 million and it was obviously unhappy with such a small loss, it wanted to do better. Well, it seems that its prayers were answered, as evidenced by the more than 60% drop in the platform’s revenue in Q2 2022!
Compared to the same period in 2021, the platform saw its revenue drop from $2,033 million to just $802 million! A small drop of 60.55%.
Not bad, but that’s not all!
1.04 billion loss for Q2
Compared to the same period in 2021, the company also reported an operating loss of $1.04 billion! A rather significant loss when you consider that in 2021, it posted a PROFIT of 874.7 million!
Such a loss is explained by a drastic drop in volume on the platform and the platform receiving the majority of its revenue through trading fees … RIP.
In view of such a drop in revenue, it is easy to understand why Coinbase laid off 1,100 employees, or nearly 18% of its workforce in June! Coinpri hopes they’ve found work again, if so, we’re looking for writers to explore the metaverse twists and turns of the blockchain with us.
With BlackRock’s Aladdin investment platform opening the door to cryptos for its clients via Coinbase Prime, will the stock fare better? It’s a possibility, as the investment fund still has $10 trillion in assets under management…
CEO and Editor-in-Chief of Coinpri I have been navigating the waters of Blockchain for 5 years already.
Wait, I can see the Promised Land of Adoption in the distance.