Bitcoin ETF

Bitcoin

Coinbase shares rose 3.2% after hours following its latest Q2 results filing — reporting $1.4 billion in revenue in Q2 along with a hefty year-on-year increase in crypto trading volumes.
The crypto exchange <a href="https://s27.q4cdn.com/397450999/files/doc_financials/2024/q2/Q2-24-Shareholder-Letter.pdf" target="_blank" rel="noopener nofollow">reported</a> $266 billion in consumer and institutional trading volumes, up from the prior year period and in line with analyst estimates, though it was a considerable drop from the $312 billion reported in Q1.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-08/59aa1a0e-51be-49d5-b097-114116e0b032.png" alt="Coinbase shares rise 3% as Q2 crypto trading doubles from last year">
 <figcaption style="text-align: center;">
 Key takeaways from Coinbase’s Q2 financial statement. Source: Coinbase
 </figcaption>
</figure>
When it came to revenue, Coinbase gained the most ground from <a href="https://cointelegraph.com/explained/crypto-wallets-explained">subscription and services</a> revenue, which includes stablecoin revenue, blockchain rewards and fees. This marked a 17% increase from Q1 and nearly doubling from Q2 2023. 
Coinbase partially attributed this rise to it serving as a <a href="https://cointelegraph.com/explained/various-forms-of-bitcoin-custody-explained">custodian for several asset managers </a>issuing spot Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) exchange-traded funds.
The exchange’s transaction revenue, which results from crypto trading activity, doubled from Q2, 2023 to hit $780.9 million, though it was down from the first quarter. 
Of this, $664.8 million came from consumer-based transaction revenue — falling short of a $695 million <a href="https://www.zacks.com/stock/news/2312286/will-coinbase-coin-gain-from-improved-trading-in-q2-earnings" target="_blank" rel="noopener nofollow">estimate</a> from investment research firm Zacks. But<a href="https://cointelegraph.com/news/crypto-firms-targeting-custodian-market-institutional-adoption-grows"> institutional transaction revenues</a> came out at $63.6 million — beating a $55 million estimate from Zacks.
It marked the third straight quarter that Coinbase returned a profit and the sixth on an adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) basis. Net income was $36 million in the quarter. 
Coinbase said this included $319 million in pre-tax cryptocurrency losses in its investment portfolio — mostly paper losses — as market prices were lower at the end of Q2 than in Q1.
But Coinbase’s biggest win in Q2 may have come from the <a href="https://cointelegraph.com/news/bitwise-investment-chief-crypto-market-still-isnt-bullish-enough">regulatory progress made</a> in Washington DC — not its balance sheet:
<blockquote>
 “In Q2, we made extraordinary progress toward driving regulatory clarity in the US and around the world. Crypto legislation has become a mainstream issue in the US, garnering bipartisan support, and there is real energy within both the House and the Senate to pass meaningful legislation.”
</blockquote>
Related: <a href="https://cointelegraph.com/news/coinbase-digitalx-bitcoin-etf-custody-australia">Coinbase provides custody for DigitalX’s new Australian Bitcoin ETF</a>
Coinbase’s (COIN) <a href="https://cointelegraph.com/news/cathie-wood-ark-sells-coinbase-bitcoin-70k">share price fell 5.2%</a> to $212.6 on Aug. 1 before reporting but rebounded 3% after the firm posted its financial results after-hours, Google Finance data <a href="https://www.google.com/finance/quote/COIN:NASDAQ" target="_blank" rel="noopener nofollow">shows</a>.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-08/641e0ea1-de3a-47db-a4c3-02ef490b5e41.png" alt="Coinbase shares rise 3% as Q2 crypto trading doubles from last year">
 <figcaption style="text-align: center;">
 COIN’s change in share price on Aug. 1. Source: Google Finance
 </figcaption>
</figure>
Magazine: <a href="https://cointelegraph.com/magazine/toyota-ethereum-mobility-hong-kong-inverse-bitcoin-etf-asia-express/">Toyota’s love for Ethereum, HK nods inverse Bitcoin ETF, stablecoin: Asia Express</a>

Coinbase shares rise 3% as Q2 crypto trading doubles from last year

Cointelegraph

Other articles published on Aug 2, 2024

Top Memecoins to Watch for Big Gains in This Bull Run!

Assessing Bitcoin’s trends: $700K possible, but not $24M – Here’s why

XRP Ledger Excels In July With Strong Network Growth, What’s Next?

MakerDAO Sets $100bn Stablecoin Goal Amidst Exciting Upcoming Crypto Presales

Ethereum ETF Starts The Month Of August With A Positive Inflow, Adds $26.7 Million!

Cryptocurrency Ethereum Classic Falls More Than 3% In 24 hours

Join our free newsletter for daily crypto updates!