Coinbase Suffers $1 Billion Net Loss in Q2

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.