Coinbase Suffers $1 Billion Net Loss in Q2

24.08.2022 09:39
by Gabriel Cross
1 min read

More trouble for Coinbase. The popular crypto exchange is forced to cut costs and restructure its revenue model, after a $1 billion net loss and 60% drop in revenue in the second quartal of 2022.

Coinbase is still feeling the effects of the crypto winter. Its CEO, Brian Armstrong, claims that trading fees are an excellent source of profit during bullish market conditions. However, when the market is bearish, this kind of revenue model is inadequate.

In the future, Coinbase will be looking to base more than 50% of revenue on subscriptions and services, in order to be more protected in adverse market conditions. Currently, subscriptions make just 18% of its total revenue.

Recently, we reported a 9% drop in the company’s share value, after 18% of its staff was let go.

Author

  • Gabriel Cross used to be a bank officer for an international bank for many years. From this point of view, he says the time spent obtaining a degree in economics was a waste of time. A few years back, he decided to quit his job and start trading. He is obsessed with decentralized finance, but he often plays with the stock market, investing with great pleasure into ground-breaking tech solution startups.

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