Billions lost at crypto exchange Coinbase

Billions lost at crypto exchange Coinbase

The crypto winter continues to strike: On Tuesday, Coinbase also had to accept cutbacks on the stock exchange. The stock fell 5 percent in after-hours trading. The crypto exchange previously posted a second-quarter loss of over $1 billion, scaring investors. The sales figures were also below the analysts’ estimates: At $808.3 million, they were well below the expected $832.2 million. Year over year, Coinbase’s revenue fell nearly 64 percent.

In a letter to shareholders, Coinbase executives cited “dramatic market moves” that spooked users and cooled trading. The crypto exchange laid off 18 percent of its workforce in June — about 1,100 employees. However, it did not announce plans for a second round of cuts like other crypto firms like Gemini and Robinhood have done.

And here are the other headlines of the night:

Roblox also reported disappointing results on Tuesday, missing analyst estimates for revenue and earnings. The loss per share was 30 US cents, while sales of 639.9 million US dollars missed the expected 644.4 million dollars. The gaming platform’s shares fell more than 12 percent in after-hours trading. The US company had an average of 52.2 million active users. The latter, while up 21 percent year-on-year, was down from the 54.1 million daily active users reported in the first quarter.

Walmart is said to be planning to set up its own streaming service. According to a report by The New York Times, the American retailer is in talks with some well-known content players about which shows and films it could offer to Walmart Plus subscribers. Discussions are said to have taken place with Paramount, Disney and Comcast. However, Walmart declined to comment.

Micron will build $40 billion plants in the US by the end of the decade. As a result, the USA’s race to catch up in semiconductor production is gaining momentum. The so-called “Chips and Science Act”, for which US President Joe Biden paved the way on Tuesday, is expected to flow into the industry with 52 billion dollars. Producers should also be given tax breaks to help as long as they are planning new plants in the USA. Globalfoundries is now also expanding its plant in the US state of New York.

Datarobot, a US artificial intelligence startup, is losing most of its senior management. According to a media report, the chief financial officer (CFO) and several other senior employees have resigned. At the same time, the company is to prepare a second round of redundancies this year. CEO Dan Wright left the company last month after it was revealed he had quietly sold shares over the past year when the company was at a peak valuation. Also, now-departing executives CFO Damon Fletcher and chief go-to-market officer Tom Levey are both reported to have sold shares over the past year.

Hootsuite has cut its workforce by 30 percent. The social media marketing company didn’t provide a specific number, but the Canadian firm had around 1,400 employees as of June, which would indicate that around 400 employees have been laid off since then. “We must realign our strategies to drive efficiency, growth and financial sustainability,” CEO Tom Keizer said in a statement.

Our reading tip on the start-up scene: The crisis was already becoming apparent: now the Berlin crypto bank Nuri has filed for bankruptcy. However, the fintech founders do not want to give up.

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