Coinbase Reports $1.4B Revenue in Q2 Earnings, Shares Rise 3%
Cryptocurrency exchange giant Coinbase reported total revenue reached $1.4 billion with net income amounting to $36 million in the second quarter beating analyst expectations.
Shares were trading up 3.23% at $219.50 at market close on Thursday.
In its shareholder letter, Coinbase said it has hit an adjusted EBITDA of $596 million, marking its sixth consecutive quarter of positive adjusted EBITDA. This profitability highlights Coinbase’s resilience and adaptability in the evolving cryptocurrency market.
The firm said it is making significant strides in diversifying its revenue streams, as shown by its subscription and services revenue of nearly $600 million.
Diversification is important for the company’s long-term sustainability, reducing its reliance on transaction-based revenue. Coinbase is showing it can generate income from various sources within the crypto space.
The firm also strengthened its balance sheet, with USD resources increasing to $7.8 billion, up $733 million quarter-over-quarter. Coinbase is showing it is pushing to capitalize on future growth opportunities and prepared to navigate the volatility of the crypto market.
A key highlight of Coinbase’s second-quarter report is the progress in achieving regulatory clarity. The company stressed it views regulatory progress as important for unlocking further growth in both its business and the broader crypto economy.
This year the Securities and Exchange Commission (SEC) finally approved spot Bitcoin and Ethereum exchange-traded funds (ETFs) further legitimising crypto investing.
“We frequently hear from businesses of all sizes that they are waiting for clear rules before fully committing to the crypto space. Approximately 90% of institutional investors have indicated
Read more on cryptonews.com
