On Tuesday, August 9, cryptocurrency exchange Coinbase announced its earnings for the second quarter of 2022.

During the second quarter, the company reported a staggering $1 billion loss.

Coinbase’s loss per share was $4.95, versus the $2.65 forecast.

Additionally, the company also missed its revenue estimates as second-quarter revenue came in at $808.3 million, versus the $832.2 million forecast.

Coinbase’s revenue plunged more than 64% during the second quarter amid the crypto market crash.

Retail transaction revenue decreased 66% to $616.2 million.

If we look at the revenue, Bitcoin accounts for 31% while Ethereum accounts for 22% of the revenue.

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Coinbase’s net loss widened to $1.1 billion, compared to $1.59 billion in revenue recorded during the same quarter last year.

Coinbase’s assets by the end of the June quarter were $428 million.

This was a 50% drop from $1 billion in assets during the end of the March quarter.

In a letter to shareholders, I wrote Coinbase Company:

The second quarter of 2022 was a stress test for crypto companies, and it was a complex quarter overall.

Dramatic market movements have changed user behavior and trading volume, affecting transaction revenue, but also highlighting the strength of our risk management software.

Coin fell by more than 10%:

After Coinbase announced its second-quarter results on Tuesday, COIN stock collapsed more than 10%, and an additional 5% in after-market hours.

COIN stock is currently trading at $87.6.

During the second quarter, COIN stock lost 75% of its value.

The value of cryptocurrencies on the platform decreased to $96 billion on a quarterly basis from $256 billion.

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In its letter to shareholders, Coinbase wrote:

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While we saw net inflows in the second quarter, we noticed that the majority of this behavior was from institutional clients who are getting rid of risk and selling crypto for fiat rather than withdrawing their cryptocurrency to another platform.

As a result, our market share of the total cryptocurrency market cap decreased to 9.9% from 11.2% recorded in Q1.

Recently, Coinbase got into a fight with the SEC over allegations of selling security tokens on the platform.

But considering the positive development, Coinbase has recently partnered with BlackRock, the world’s largest asset management company, to offer bitcoin to institutional clients.

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