%Coinbase Global’s (NASDAQ: $COIN) stock is down 10% after the cryptocurrency exchange reported disappointing financial results for this year’s second quarter.
Specifically, Coinbase said that gains in its subscription revenue failed to offset weaker trading volumes during the April through June quarter, sending its share price tumbling.
Coinbase reported Q2 earnings per share of $5.14 U.S., which was well above the $0.14 announced a year ago.
The company’s latest profit was helped by a gain of $1.50 billion U.S. from an investment in %Circle Internet Group (NYSE: $CRCL), which went public during the quarter, and $362 million U.S. from its cryptocurrency investments in digital assets such as %Bitcoin (CRYPTO: $BTC) and %Ethereum (CRYPTO: $ETH).
Revenue in the latest quarter increased to $1.5 billion U.S. from $1.45 billion U.S. a year earlier. However, the sales figure fell short of the $1.6 billion U.S. expected on Wall Street.
Coinbase reported that trading volumes among individual retail investors, which is typically more profitable than institutional volumes, grew 16% year-over-year to $43 billion U.S.
However, that figure missed the $48.05 billion U.S. consensus expectation of analysts.
Subscriptions and services revenue, which includes %Stablecoins, staking and custody, grew 9% from the same period a year ago to $655.8 million U.S., below projections of $705.9 million U.S.
Along with its latest financial results, Coinbase said that it will soon expand beyond crypto to offer tokenized real-world assets, derivatives, prediction markets, and early-stage token sales.
Prior to today (Aug. 1), COIN stock had risen 47% this year to trade at $377.76 U.S. per share.
