Coinbase’s stock has endured a bruising few days as it has experienced a significant drop amid a downturn in the digital asset market.
On Friday (Sep, 6) the centralized crypto exchange’s share price plummeted 20% to its lowest point since February. By Monday the shares had recovered slightly up 5% after a day’s trading.
This volatility comes as investor concerns continue around faltering US and Asian markets. The health of the US economy has come into question several times over the last month, with the general technology sector feeling the squeeze.
Coinbase wasn’t the only company to feel these market pressures, as huge players in the AI technology space have seen their market cap fall in recent weeks.
At the start of September Nvidia’s stock price fell by 9.5%, wiping $278.9 billion off the chip maker’s value.
Coinbase sees revenue increases, amid declining profits
Just last month, it was announced that Coinbase had more than doubled its second quarter compared to last year despite seeing a decline in net income over the previous quarter.
The company saw $1.45 billion in Q2 revenue, but the net income has drastically fallen to $36 million compared to nearly $1.2 billion in Q1.
In a shareholder letter, the decline in net income was described as being partly due to a fall in crypto values:
“Net income included $319 million in pre-tax crypto asset losses on our crypto investment portfolio, the vast majority of which were unrealized. These losses were $248 million after reflecting the tax impact.”
Overall, the quarter was described as being “strong progress” for Coinbase and the crypto industry.
“Q2 was a quarter of strong progress for Coinbase and the crypto industry. In addition to solid financial results and continuing to build trusted products to help drive crypto adoption, Coinbase and the crypto industry made great strides towards achieving regulatory clarity in the US, which we believe will be a major unlock for innovation in the industry.”
Featured Image: Via Ideogram
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