Coinbase reveals staggering Q2 revenue figures

Wed 11 Aug 2021 ▪ 16h33 ▪ 4 min de lecture - par Felix Meyer

On Tuesday, 10th August, the US cryptocurrency trading platform Coinbase published its second quarter revenue report, and the figures appear to be monstrous.

Letter to shareholders

High volatility of digital assets can lead to contingent losses, but more importantly, it can bring significant profits that pay off. It’s hard to imagine sums which operators of crypto platforms earn by offering their clients solutions and software for trading digital currencies. Coinbase, according to its second quarter 2021 shareholder letter published yesterday, has earned $1.9 billion (~£1.45 billion), with 95% of that coming from trading fees. Bumper profits!

For the first time, Ethereum (ETH) trading volume was greater than Bitcoin (BTC) (26% ETH compared to 24% BTC). After Bitcoin reached the last global price maximum, the market sank significantly and has begun to recover just recently. Therefore, if the Coinbase Q2 report had been prepared and filed a few weeks later, the total profit of the cryptocurrency giant could have been much higher. Especially now, when Bitcoin value has levelled back to $45,000, making traders and investors pursue more and more deals.

Talking figures

The key figure of the report is Q2 net revenue of $2 billion (~£1.45 billion), which makes the quarter the highest ever seen. Coinbase’s earnings per share reached $3.45 (~£2.50) against the predicted $2.33 (~£1.69). Q2 figures differ drastically from the Q1 net revenue that equalled $771 million (~£557 million).

Though such a yield may seem mindblowing, it was rather predictable since Coinbase derives 95% of its profits from trading fees that are among the highest in the industry. Thus, $1.9 billion (~£1.37 billion) of the company’s net revenue accorded for transaction fees, with the remaining $100 million (~£72 million) accounting for the Coinbase subscriptions and services.

Coinbase greets new retail traders

The report revealed that monthly transacting users (MTUs) on Coinbase grew to 8.8 million in Q2, up 44% from Q1.

The number of verified users is also on the up-trend, reaching 68 million at the end of Q2.

“We now have over 9,000 institutions who continue to deepen and broaden their activities in the cryptoeconomy and more than 160,000 ecosystem partners who are using our crypto tools and services to engage with their own customers.”

As of 30th June 2021, Coinbase assets totalled $180 billion (~£130 billion), which is about 11.2% of the total crypto market cap.

Coinbase Q2 report once again proved that the crypto industry is gaining momentum, offering more chances to run a profitable business. Meanwhile, traditional market giants such as PayPal, Visa and Mastercard don’t want to fall behind and have already started developing new financial solutions to meet the fast-changing demands.

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Felix Meyer

Le trading et l'analyse technique sont mes spécialités depuis 4 ans. Je décortique le marché et vous partage mon expertise.

DISCLAIMER

Les propos et opinions exprimés dans cet article n'engagent que leur auteur, et ne doivent pas être considérés comme des conseils en investissement. Effectuez vos propres recherches avant toute décision d'investissement.

Cours & Indices

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