Coinbase Q2 2022 Earnings Review: staying bullish in a bear market
Coinbase and Robinhood went through explosive growth in 2020 and 2021, and now both face the challenges of a bear market. Both companies face declining metrics across the board: active users, assets under custody, trading volumes, and revenue. Coincidentally, both companies have the same amount of cash reserves on their balance sheets, around $6 billion. However, you see two completely different approaches to navigating this downturn.
Vlad Tenev, CEO and co-founder of Robinhood, is steering the company towards profitability by year-end, while Brian Armstrong, CEO and co-founder of Coinbase, is ready to suffer through the losses until the market returns to growth. This could be a difference in the management style or risk tolerance, but, perhaps, Brian Armstrong is just more bullish on the crypto market and its ability to return to growth faster than anyone expects.
If you are new to Coinbase, I suggest reading my previous reviews: 👉🏻 Coinbase: selling shovels in a gold rush is a profitable business 👉🏻 Coinbase Q1 2022 Earnings Review: did the company print enough cash to survive the crypto winter?
