Coinbase earnings: disappointing, but you shouldn’t lose hope yet 📉; Ethereum is one step closer to merge, and it’s huge 🙌; Celsius’ tentacles in Germany 🇩🇪
Good Morning FinTech, 12 August
Good evening Everyone,
And happy Friday! Despite coming in late, today’s issue is centered around crypto and it’s really hot. We’re going to look at Coinbase earnings, which are really disappointing (but you shouldn’t lose hope yet as it has some hidden gems), Ethereum which is one step closer to merge (& why and it’s huge!), and Celsius’ tentacles that can be found in Germany. Let’s jump straight into the interesting stuff:
Coinbase earnings: disappointing, but you shouldn’t lose hope yet 📉
Earnings call 📞 Crypto exchange pioneer Coinbase COIN 0.00%↑ had a bad Q2.
Though trying to put a brave face on an alarming set of results, the company said:
It's never as good as it seems, and it's never as bad as it seems.
I have to agree with this, and you will see why.
More on this 👉 Here are the key things you must know from Coinbase’s latest earnings report:
Coinbase suffered a $1.1 billion net loss in the second quarter of 2022 as the crypto winter scared away retail investors.
Trading volumes plunged by 30% in this three-month period to $217 billion, while transaction revenues slid by 35%.
Monthly transacting users fell by just 2% when compared with the previous quarter — and worldwide, it now has 9M customers. That's slightly down from 9.2M in Q1, but a marked drop from 11.2M in the final quarter of 2021, when Bitcoin hit a new all-time high of $68,700.
Hence, trends suggest Coinbase users are becoming more passive investors, but this is bad news for a company that relies heavily on fees for profits.
3/4 of its market value has been wiped out, poor performance in Q2 + grim future outlook have definitely put Coinbase in a difficult situation. But you shouldn’t lose hope and start betting against them just yet, here’s why:
P.S. I’m going to write a deep dive into their earnings soon, so make sure you have hit subscribe!