Losses at Coinbase hit an astonishing $1.1 billion in the second quarter of 2022.
The cryptocurrency exchange, listed on the NASDAQ in New York since April 2021, blamed the “fast and furious” fall of the market for the performance.
It said the figure was mainly driven by $446 million in non-cash impairment charges caused by lower crypto asset prices in Q2.
However revenue dropped a huge 153% compared with the same period in 2021 to $802.6m, also down 45% compared with Q1, while trading volume fell 30% and transaction revenue was down 35% year-on-year.
The results, which missed analyst expectations, follow $430m of losses in Q1. The company’s share price fell almost 11% on Tuesday following the announcement and currently stands below $88.
The share price stood at almost $350 in November, prior to the crypto crash, and fell below $50 briefly at the end of June and early July.
“The current downturn came fast and furious, and we are seeing customer behaviour mirror that of past down markets,” Coinbase, which cut 18% of its workforce in June, stated.
CEO Brian Armstrong even went as far as to describe the bear market as “a breath of fresh air”, saying it allowed the company to focus on areas of business away from onboarding new users.
On an earnings call he also said public investors may not be familiar with the cyclical nature of the crypto industry and added: “the more regulation there is for crypto, the better it is for Coinbase”.