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cryptocurrency In the cold winter, the first cryptocurrency exchange in the United States, Coinbase, has had a hard time.
According to foreign media reports, on August 9, local time, the US cryptocurrency exchange Coinbase Global stated in a Form 10-Q document that it had received a subpoena and request from the U.S. Securities and Exchange Commission (SEC), with the content involving Its listed assets process, classification of certain listed assets, pledge service plans, stablecoins and income products, etc.
At the same time, financial data showed that Coinbase's net revenue in the second quarter was US$803 million, a year-on-year decrease of 60%; net loss was US$1.094 billion (approximately RMB 7.37 billion), compared with a profit of US$1.606 billion in the same period last year.
Since the beginning of this year, Coinbase's stock price has fallen by more than 60%. It is worth mentioning that since its listing, Coinbase has been held by "My sister" Cathie Wood's high position . Due to recent regulatory concerns, "My sister" reduced its holdings at a low level in July this year, resulting in missing Coinbase Recent rebound.
Coinbase admitted to receiving SEC subpoena
According to foreign media reports, Coinbase stated in a Form 10-Q document on August 9 local time that it had received an investigation subpoena and request from the SEC (US Securities and Exchange Commission). "The content involves a certain These customers plan, operate and existing and expected future products”, including the process of their listed assets, the classification of certain listed assets, their pledge service plans, and their stablecoins and earning products.
Coinbase said the SEC sent the company a voluntary message request in May this year, including its listing and listing process, but the exchange does not know whether the investigation will become a formal investigation. "We often receive formal and informal inquiries from regulators about our perceptions of the development of the crypto economy, our products and operations," the company wrote in a shareholder letter. "House 2021" also mentioned, " The California Department of Fair Employment and Housing issued an investigation subpoena asking for documents and information related to certain of our business practices and policies, and this matter is still underway. We intend to fully cooperate with such investigations."
Previously, according to Bloomberg In July, Coinbase is facing a U.S. investigation into whether it improperly allows Americans to trade cryptocurrencies that should have been registered as securities. As soon as the news came out, Coinbase's stock price fell 21% on the same day.
However, regarding the investigation, Coinbase stated in its quarterly report: "The company believes that the final resolution of existing legal and regulatory investigations will not have a material adverse impact on the company's financial condition, operating results or cash flow ."
trading volume plummeted, with a loss of more than US$1 billion in the second quarter
In the Form 10-Q file on August 9, Coinbase's second quarter performance in the 2022 fiscal year also surfaced.
report shows that Coinbase's net revenue in the second quarter was US$803 million, a decrease of 60% compared with US$2.033 billion in the same period last year; net loss was US$1.094 billion, compared with net profit in the same period last year $1.606 billion. The diluted net loss attributable to common shareholders was US$1.10 billion, while the diluted net profit attributable to common shareholders was US$1.593 billion in the same period last year.
Whether it is net income and earnings, Coinbase's second quarter data are at its lowest level in the past five quarters; it is worth noting that this is also Coinbase's two consecutive quarters of losses.
From the perspective of revenue structure, cryptocurrency trading is the pillar of Coinbase's revenue. Coinbase's total trading revenue in the second quarter was US$655.2 million, compared with US$1.9304 billion in the same period last year; of which, net trading revenue from retail investors was US$616.2 million, compared with US$1.828 billion in the same period last year ; Transaction revenue from institutional investors was US$39 million, compared with US$102.4 million in the same period last year.
In Coinbase's second quarter transaction revenue, Bitcoin trading revenue accounted for 31%, an increase from 26% in the same period last year; Ethereum trading revenue accounted for 22%, compared with 22%, 26% in the same period last year decreased; other crypto asset transaction revenue accounted for 47%, a slight decrease from 48% in the same period last year.
From the perspective of the other two core indicators of the cryptocurrency trading platform - transaction size and user size, Coinbase has also declined. Data shows that the platform's monthly transaction users in the second quarter were 9 million, a decrease of 2% from the previous quarter, but the total transaction volume in the second quarter fell to US$217 billion, a decrease of 30% from the first quarter.
At the same time, the asset size of the Coinbase platform was US$96 billion, a month-on-month decrease of 63% from US$256 billion at the end of the first quarter and a year-on-year decrease of nearly 50% from the same period last year.
Coinbase official also has no confidence in the trend of cryptocurrencies in the second half of the year. In its financial report, it expects trading volume in the third quarter of this year to be even weaker, and the average monthly trading users may drop to the range of 7-9 million.
htmlStock price plummeted by more than 60% in 5 years
Coinbase is the first cryptocurrency exchange listed in the United States. In a sense, Coinbase is also the most compliant cryptocurrency trading platform in the world.
In February 2021, Coinbase, which was established for 9 years, officially submitted a prospectus to Nasnak, and logged into Nasdaq on April 14 of that year, with the stock code "COIN". Shareholders of the company include New York Stock Exchange , Spanish foreign bank (BBVA), IDG Ventures, Japan's Tokyo Bank, USAA, and Japan's Mitsubishi Financial Group MUFG and other world-renowned financial institutions. structure.
Since the beginning of this year, the entire crypto market has encountered a cold wave, and the total market value of cryptocurrencies has shrunk significantly, and crypto giants such as Terra, Sanjian Capital, and Celsius have also fallen one after another. Coinbase's share price has also continued to decline since the end of last year.
Judging from Coinbase's recent stock price trend, since Coinbase hit its historical low of $40 from May to June this year, the company's stock price has continued to rebound and rebound. As of the close of August 10, Coinbase's stock price has nearly doubled, but its decline this year still reached 62.7%.
As the stock price continues to fall, all kinds of capital are also retreating.
On February 25 this year, Coinbase released its fourth quarter and full-year financial reports for 2021, which showed signs of various capital "running away". Coinbase founder Brian Armstrong cashed out $1.5 billion, and co-founder Frederick Ehrsam cashed out $500 million. In addition, ARK Ark Fund and JP Morgan have also successively reduced their holdings, and Hillhouse Capital has basically cleared their holdings.
Recently, "My sister" Cathie Wood's operation on Coinbase has sparked heated discussions in the market. It is reported that since Coinbase went public, Cathie Wood has been continuously buying Coinbase stocks. But regulatory information shows that three ARK's ETFs sold about 1.41 million shares of Coinbase stock on July 26, worth about $75 million. This is also the first time that "Mu Toujie" has sold the stock this year.
Cathie Wood once said in an interview with the media that uncertainty in cryptocurrency regulation ultimately led to its reduction in positions in Coinbase.
However, judging from the results, the operation of "Mr. Mutou" cutting positions in July also led to his missing Coinbase's recent rebound. Since ARK's share price has risen by more than 80%.
Previously, Coinbase reached a partnership with BlackRock, the world's largest investment management agency. Under the agreement, BlackRock's institutional clients who also own digital assets on the Coinbase platform will now be able to use BlackRock's software tools to integrate platform Aladdin to manage their asset portfolio and conduct risk analysis of investment decisions.
Source: Securities China (ID: quanshangcn)
Editor: Wan Jianyi
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