Golden observation | the most difficult Q2: crypto listed companies mostly end up with losses

The bear market of encryption makes many listed companies in the encryption industry suffer.

The second quarter of this year was arguably the worst three months in cryptocurrency history. be known as TerraThe so-called stable currency of USD and Luna crash. The turmoil spread rapidly, and the encryption company that was once in the limelight laid off employees, stopped merging and prohibited customers from withdrawing funds. The total value of the cryptocurrency market plummeted by 56% in the quarter. Affected by a series of events, the performance of many crypto listed companies in the second quarter of 2022 is not ideal.

Coinbase's net loss in the second quarter exceeded $1 billion

On August 10, coinbase, a cryptocurrency exchange, released the second quarter financial report of fiscal year 2022.

According to the report, the net revenue of coinbase in the second quarter was US $803 million, a sharp decrease from US $2.033 billion in the same period of the previous year; The net loss was USD 1.094 billion, compared with the net profit of USD 1.606 billion in the same period of the previous year; The diluted net loss attributable to ordinary shareholders was US $1.1 billion, compared with the diluted net profit attributable to ordinary shareholders of US $1.593 billion in the same period of the previous year; The diluted net loss per share attributable to ordinary shareholders was US $4.98, compared with the diluted net profit per share attributable to ordinary shareholders in the same period of the previous year was US $6.42.

Coinbase's net revenue and diluted earnings per share in the second quarter failed to meet the expectations of Wall Street analysts, leading to a sharp drop of nearly 5% in its after hours stock price.

The number of certified users of coinbase in the second quarter was 103 million, which nearly tripled compared with 36 million in the second quarter of 2020. The number of monthly trading users (MTU) in the second quarter was 9 million, an increase from 8.8 million in the same period of the previous year, but a decrease from 9.2 million in the first quarter of 2022.

Cleanspark has a net loss of US $29.3 million

BitcoinThe miner cleanspark had a net loss of $29.3 million in the quarter ended June, compared with a net loss of $170000 in the previous quarter. In terms of bitcoin mining, this quarter was the quarter with the highest bitcoin mining volume of cleanspark (964 BTC , up 7% from the previous quarter), but this was offset by the decline in the value of bitcoin. The company's revenue in the latest quarter was $31 million, down from $41.6 million in the previous quarter.

Cleanspark's mining business accounted for 90% of its revenue. The company said it would sell its energy business assets to fully focus on bitcoin mining.

Coinshares: first quarter loss

On August 2, coinshares, a crypto asset management company, released the second quarter financial report. The total revenue in the second quarter was 13.9 million pounds (about 17 million US dollars), a year-on-year decrease of 29%. The total comprehensive loss in the quarter was 100000 pounds (the revenue in the second quarter of 2021 was 26.6 million US dollars). Overall, coinshares recorded a consolidated total revenue, revenue and other income of £ 15.3 million in the second quarter. However, due to the loss of £ 17.7 million (approximately US $21.61 million) due to the UST held, the company recorded a loss in the first quarter (loss of £ 2.4 million).

Marathon Digital: loss of USD 1.92 in the second quarter

On August 9, marathon digital, a bitcoin mining enterprise, released a financial report that it lost $192 million in the second quarter, higher than the net loss of $109 million in the second quarter of 2021. In addition, it mined 707 bitcoins in the second quarter, a decrease of 44% over the previous quarter. Meanwhile, its bitcoin reserves were also impaired by $127.6 million in the current quarter.

Galaxy Digital: net loss in the second quarter reached US $554.7 million

On August 8, Galaxy digital, a cryptocurrency financial service company, said that its net loss in the second quarter reached US $554.7 million, which nearly tripled year-on-year. In addition, as of June 30, the liquidity position of Galaxy digital was US $1.5 billion, and the partner's capital increased by 23% year-on-year to US $1.8 billion.

Block: the impairment loss of bitcoin held in the second quarter was US $36 million

Financial technology and digital payment giant block (formerly Square) announced its second quarter results last Thursday, in which bitcoin related revenue fell 34% to $1.79 billion. Total revenue decreased by 6% to $4.4 billion, excluding bitcoin related revenue, with net revenue of $2.62 billion. The impairment loss of bitcoin held was US $36 million. The company said that the reason for the decline in revenue was "mainly due to the decline in consumer demand and bitcoin prices, and partly due to the broader uncertainty of crypto assets."

MicroStrategyIn the second quarter, digital assets recorded an impairment of US $917.8 million

On August 3, MicroStrategy announced its second quarter financial results. The impairment loss of digital assets in the second quarter of 2022 was US $917.8 million, compared with us $424.8 million in the second quarter of 2021. As of June 30, 2022, the book value of MicroStrategy's digital assets (including about 129699 bitcoins) was $1.988 billion, which reflected the accumulated impairment loss of $1.989 billion since the acquisition, and the average book value of each bitcoin was about $15326.

In general, the above crypto listed companies ended with "losses" in the second quarter. However, the crypto bear market is the time for these enterprises to "keep fit". As Brian Armstrong, chief executive officer of coonabse, said in a conference call with analysts, "We can't control macroeconomic factors or economic recession. We don't even control the crypto market more broadly. So what can we control? Obviously we can focus on creating excellent products for our customers. We can focus on staying at the forefront of crypto technology to ensure that we are creating compelling use cases and making them available to our customers."