Coinbase Posts Record Profit of $1.6 Billion in Q2, Ethereum trading surpasses Bitcoin

Coinbase announced second quarter earnings on Tuesday, posting a profit of slightly over $1.6 billion, which is nearly double what it posted in the first quarter. The company also announced revenue of $2.03 billion, which exceed analyst predictions of predictions of $1.88 billion.

The company also reported a spike in user activity, noting that retail “Monthly Transacting Users (MTUs) grew to 8.8 million, up 44% from Q1 2021,” and that its total base of verified users had climbed to 68 million.

And in a sign Coinbase may finally be finding a way to diversify its revenue streams, the company reported bringing in over $100 million in subscription and services—that figure, however, is still dwarfed by the $1.9 billion in revenue from transaction fees, which remains the company’s bread and butter.

And in another notable milestone, trading volume in Ethereum outstripped Bitcoin for the first time on the platform, with Ethereum accounting for 26% of volume versus 24% for Bitcoin:

In its Q2 letter to shareholders, Coinbase also touted the growing variety of participants in the crypto market. The company noted it now has over 9,000 institutional customers and pointed out that Sotheby’s auction house had settled its first transaction in crypto during the last quarter.

Coinbase’s share price has rallied in recent weeks, brushing $280 on Tuesday morning. This is a marked improvement for the stock, which had traded as low as $220 in June, but is still a far cry from the $342 all-time-time it reached shortly after the company went public in May. After hours on Tuesday, the stock which trades under the ticker symbol COIN was up around 2%.

Coinbase CEO Brian Armstrong will be hosting an earnings call at 5:30pm ET today on which he is expected to answers questions about NFTs, the blockchain Solana and other queries. Decrypt will post an account of the call.

This story will be updated with further details shortly.

10 August 2021 20:12