Coinbase Global has reported an impressive result in its second-quarter earnings report. On Tuesday, August 10, Coinbase cryptocurrency exchange reported its second-quarter revenue better than analysts expected.
However, Coinbase’s revenue hit $2.23 billion compared to $1.78 billion, which analysts had expected. Also, the company’s earnings stood at $3.45 per share, excluding stock-based compensation benefits compared to $2.33 per share, which analysts had expected.
Coinbase’s net profit for the second quarter was $1.6 billion, up almost 4,900% from a year earlier, following a volatile period of crypto trading.
The company saw a total retail trading volume of $145 billion in June, up 21% from the March quarter. The firm attributed to a more robust increase of monthly transacting users, strength in the cryptocurrency market, and its support of more trading assets.
Coinbase has 8.8 million monthly transacting users, up from 6.1 million in the March quarter, while trading volume increased 38% to $462 billion from the previous quarter.
The company’s overall trading volume reached $462 million, up from $335 million in the March quarter. Of that overall total trading volume, 24% was contributed by Bitcoin trading, down from 39% in the first quarter, the firm stated that reflected the significant rise in Ethereum trading volume, which surpassed Bitcoin trading volumes on Coinbase exchange for the first time, driven by growth in the DeFi and NFT ecosystems.
Brian Armstrong, Coinbase CEO, talked about the company’s revenue stating that the firm is experiencing a rising adoption of products beyond trading assets, including staking that allows users to earn a yield on their cryptocurrencies. Armstrong further said that customers use crypto debit cards to spend their assets in places where Visa cards are accepted.
“That tells us that truly a crypto economy is forming. It’s not just a trading platform”, Armstrong said.
Besides that, Coinbase is also experiencing rising adoption in the institutional clients. During the earnings report event, Alesia Haas, Coinbase Chief Financial Officer, said that 10% of the largest 100 hedge fund companies by assets management are now clients at Coinbase exchange.
“This is really a new theme that we see where more and more hedge funds are making an allocation to the crypto economy and engaging in multiple assets on our platform,” Haas said.
Although Coinbase did not offer formal financial guidance, the trading volume would be expected lower in the third quarter compared with the second quarter.
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