Coinbase posts strong revenue despite stalling crypto market
Make us a preferred source
Make us a preferred source on Google
The news: Coinbase reported better-than-expected revenue for the quarter ending 30 June, but net income fell precipitously due to falling crypto prices compared to the previous quarter.
The numbers: Coinbase's total revenue for its second quarter was USD1.38 billion ($2.12 billion), up nearly 100% from a year prior at USD663 million. However, it was below the first quarter's USD1.58 billion.
The company's net income came in at $36 million, down dramatically from the first quarter's USD1.17 billion. Coinbase flagged that it incurred about USD248 million net income reduction from the price of crypto assets in its portfolio falling.
Transaction revenue came in at USD664 million, down about 30% from the first quarter. That was partially made up for by its subscriptions and services segment, which includes stablecoin and blockchain mining revenue, rising 17% to just under USD600 million.
The context: Coinbase, which has a market cap of just over USD50 billion, makes most of its money through transaction fees on crypto trades. That led to a strong first quarter of 2024, with the crypto market ebullient over Bitcoin ETFs and the token's dramatic recovery from crypto winter.
The market peaked around March, however, with Coinbase's second quarter seeing a fall in transaction revenue. That was largely made up for by increased revenue from Coinbase's USDC stablecoin, which it issues alongside Circle, and subscription revenue.
The source: Coinbase
