Finance

Coinbase profits surge following volatile stretch of cryptocurrency trading

In this article

Monitors display Coinbase signage during the company’s initial public offering (IPO) at the Nasdaq market site April 14, 2021 in New York City.
Robert Nickelsberg | Getty Images

Coinbase shares rose as much as 2.1% in extended trading Tuesday after reporting second-quarter revenues that were stronger than analysts had expected.

Here’s how the largest cryptocurrency exchange in the U.S. did versus expectations:

  • Revenue: $2.23 billion vs. $1.78 billion expected
  • Earnings: $6.42 per share, which is not comparable to estimates

The company’s net profit for the quarter was $1.6 billion, up nearly 4,900% from a year earlier, following a volatile stretch of trading for cryptocurrencies.

Coinbase’s fate is tethered to the performance of digital assets like bitcoin. The company generated $2.0 billion in net revenue, including $1.9 billion in transaction revenue and over $100 million in subscription and services revenue. Bitcoin prices fell about 41% during the quarter.

Monthly transacting users grew to 8.8 million, up 44% from the previous quarter, while trading volume rose 38% to $462 billion from the previous quarter.

The company reported that total trading volume diversified beyond bitcoin into ethereum and other crypto assets. Approximately 24% of the company’s total trading volume for the quarter was concentrated in bitcoin, down from 39% in Q1.

While the company offered no formal guidance, it did say trading volume will be lower in the third quarter compared to Q2. For the full year, analysts surveyed by Refinitiv expect $7.76 per share on revenue of $6.29 billion.

During April’s direct listing, Coinbase opened at $381 per share and was briefly valued at as much as $100 billion, a landmark event for the cryptocurrency industry.

Excluding the after-hours move, Coinbase stock has fallen about 29% since the company’s direct listing on April 14, while the Nasdaq has risen nearly 20% over the same period.

Articles You May Like

“Demystifying Breaker Blocks in Forex Trading: Understanding Limits and Opportunities”
How To Trade Forex For Beginners In 2024
US Dollar flat in lackluster Tuesday
Gold rebounds as US dollar, yields slip with eyes on Fed guidance
Yen Rises on BoJ Rate Speculation, But Gains Muted

Leave a Reply

Your email address will not be published. Required fields are marked *