Coinbase posts quarterly loss despite gains in trading share and USDC activity

Coinbase shares fell about 5% in after hours trading after the exchange reported a second quarter loss and lower revenue despite reaching a record share of crypto trading activity. The company reported revenue of approximately $1.2 billion, down from $1.5 billion a year earlier. Coinbase posted a loss of $1.36 per share compared with earnings of $5.14 per share during the same period last year. Coinbase said its share of global crypto trading volume reached a record 10.3%, up from 9.1% during the first quarter. The result marked its third consecutive quarter of market share gains despite weaker conditions across the broader crypto market. Derivatives trading remained close to the previous quarter’s record level even as overall market volume declined by double digits. Its related event contracts and revenue grew 106% from the previous quarter and surpassed a $100 million annualized revenue rate. Stablecoins were another source of growth. Average USDC held across Coinbase products reached a record $20 billion, representing more than 30% of the stablecoin’s circulating supply at the end of the quarter. Coinbase said USDC and its partner stablecoins accounted for 79% of the more than $...