In June, Coinbase shared an earnings report that worried investors, the company said difficult market conditions is the main reason behind the drop.
At the time, a Coinbase representative assured investors that the company had no major problems and would focus on consolidation to ensure that future business prospects were better.
Unfortunately for Coinbase, Q2 business reports show biggest quarterly net loss since the company listed on the NASDAQ stock exchange.
Operating costs up 8% vs. Q1 and revenue drop, Coinbase confirmed net loss of $1,1 billion, with an EBITDA loss of $151 million.
It is important to note that the increase in Coinbase's operating costs occurred despite the company's laid off 18% of employees in December.
The report shows a 30% drop in trading volume compared to Q2, resulting in a 35% drop in total transaction revenue.
According to the document, Coinbase only lose 2% user base, in the current bear market this is not bad at all. Instead, the drop in trading volume is reported as a result of traders restricting their trade and turning to more holdings.
However, there is good news for Coinbase – fees for subscriptions and services has increased by 44% since the beginning of the year.
Despite the adverse conditions facing the company, Coinbase representatives remained upbeat and assured investors that they had plenty of resources to stay afloat.
“At Coinbase, we are optimists and focused on building great products and services for our users. We are extremely proud of the speed of product rollout and the recent feedback we have received from our customers. We firmly believe that if we continue to focus on building the right products and services, we will emerge stronger than before.”
As the market starts to stabilize again, Coinbase management could cover their losses next quarter.