Coinbase Reports Record Q2 Revenue of $2 Billion, with 95% of revenue coming from transaction fees.
Coinbase, the largest cryptocurrency exchange in the United States, has just released its second-quarter revenue figures, and they are monstrous. Coinbase disclosed its astronomical profits in its second-quarter shareholder letter, which was published on August 10. The crypto trading platform acknowledged that the period was favorable for growth due to a bull run in the cryptocurrency market.
The report’s headline figure is Q2 net revenue of $2 billion, the company’s highest quarterly revenue ever. This resulted in a whopping $1.6 billion in net income for the period. Profits were more than double what the company earned in the previous quarter when it earned $771 million. Earnings per share for Coinbase were $3.45, significantly higher than analyst estimates of $2.33.
The statistics are unsurprising, given that Coinbase earns 95% of its revenue from trading fees that are among the highest in the industry. It reported transaction revenue of $1.9 billion and subscription and service revenue of more than $100 million.
Increase in the number of Coinbase retail traders
According to the report, the platform’s monthly transacting users increased to 8.8 million, up 44% from Q1 2021, with verified users totaling 68 million at the end of the period. Additionally, it noted a rise in institutional clients:
“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.”
According to the report, the platform’s assets totaled $180 billion as of June 30. On the platform, crypto-assets accounted for 11.2 percent of the total market capitalization of crypto assets. At the time of publication, the total market capitalization was $1.94 trillion.
Anthony Pompliano, speaking on CNBC today, stated that everyone underestimates Coinbase and Bitcoin, adding that entertainment behemoth AMC should add some to their portfolio. He said,
I appeared on CNBC to explain why everyone underestimates Coinbase and Bitcoin, as well as why AMC should include bitcoin on its balance sheet.
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