At its most recent earnings call, cryptocurrency platform Coinbase reported a tremendous loss of $1.1 billion in revenue for Q2, pulling the company’s stock down over 10% on Tuesday to $87.68. Earnings per share for the company also largely underperformed, with a loss of $4.98 per share versus an expected $2.65. Quarter-on-quarter user activity has also fallen, with monthly transacting users dropping 200,000 to 9.0 million; and total trading volume declining from $309 billion to $217 billion. Meanwhile, dominoes in the crypto industry continue to fall. Singapore-based lender Hodlnaut has suspended withdrawals, swaps, and deposits in a bid to “stabilise liquidity and preserve assets”. Germany-based exchange Nuri GmbH has also filed for insolvency.
Softbank Dumps Entire Uber Holdings
In light of a 2.93 trillion yen (US$22 billion) loss for Q2, Softbank has said that it has sold its entire stake in Uber for an average price of $41.47 per share, with an average cost-per-share of $34.50. The Uber offload is part of $5.6 billion in gains realised from the sale of Softbank’s various holdings including online real estate company Opendoor, healthcare firm Guardant, and Chinese real estate and brokerage firm Beike. CEO Masayoshi Son has expressed that he is “ashamed” of his enthusiasm brought on by huge profits from the earlier tech boom, and that Softbank’s Vision Fund might see a dramatic reduction of headcount.
Chinese ESG Funds Lose $1.4 Billion in Q2
Chinese ESG (environmental, social, and governance) funds displayed a net loss of $1.4 billion in Q2 – an outsized shift from Q1’s gain of $208 million. Of the $1.4 billion, $1.06 billion is attributed to outflows from the environmental sector, which researcher Morningstar attributed to market volatility and profit-taking during market rebounds in May and June. Global sustainability funds saw a drop of 62% quarter-on-quarter, with total inflow dropping from $87 billion to $32.6 billion.