Coinbase reported a loss for the second quarter on Tuesday, hurt by a plunge in trading volumes as this year’s rout in risky assets curbed investor appetite for trading in cryptocurrencies.
Shares of the company were down 6% in extended trading.
Investors have dumped speculative assets from stocks to crypto this year on fears that aggressive central bank policy tightening could tip the U.S. economy into a recession.
That has sent bellwether token bitcoin lower and forced several companies in the sector including Coinbase – which earns the bulk of its revenue from trading fees – to cut jobs.
Trading volumes slowed to $217 billion in the second quarter ended June 30, from $462 billion a year earlier when crypto’s march to the mainstream attracted interest from traders.
Coinbase posted a net loss of $1.09 billion, compared with a profit of $1.61 billion a year earlier.
One of the largest cryptocurrency exchanges in the world, Coinbase has seen its market valuation decline more than 60% so far this year.
