One of the world’s largest cryptocurrency brokers, Coinbase, posted net income of $1.6 billion in the second quarter, nearly twice as much as in the first three months of the year.
Earnings per share, in turn, were $6.62, almost three times what the market expected, in a result that benefited from an atypical income tax rate.
As a reflection, shares of the company traded in New York posted strong gains on Wednesday, August 11, advancing 5.4% to $284.48.
Coinbase: Growth of more than 1,000%
According to the company, the number of users who performed monthly operations grew by almost 500% compared to the second quarter of 2020 and 44% over the beginning of this year, reaching 8.8 million, with the verified user base rising to 68 million.
Net revenue, in turn, was $2.03 billion between April and June, growing over 1,000% year-on-year and 27% quarter-on-quarter. The volume transacted by Coinbase rose 31% compared to the first quarter, to $ 462 billion.
Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) ended the second quarter at $1.15 billion, practically stable over the first quarter.
Coinbase billing history
According to a letter to its shareholders published on Aug. 10, Coinbase said it had earned $1.82 billion in revenue from retail transactions and $102 million in revenue generated by institutions, totaling $1.93 billion.
Other revenue streams included $31.7 million in escrow fees, $39 million in “blockchain revenue” and $16.9 million in Coinbase Earn campaigns.
According to the letter, “revenue from subscriptions and services” amounted to $102.6 million.
The crypto broker said that 26% of its trading volume was ether (ETH), compared to 24% bitcoin (BTC).
According to Coinbase: “The growth in retail trading volume was driven by the strong momentum in the crypto market, product innovation and our ability to support more trading assets.”
“The institutional volume corresponds to 69% of the total volume traded, which was 64% higher than in the first quarter. During the second quarter, the institutional presence on the Coinbase platform increased rapidly, as did higher capital allocations in crypto”.
“As of June 30, 2021, assets on the platform totaled $180 billion. Cryptoactives on the platform represent 11.2% of the total market capitalization of cryptoactives. Despite the fluctuation in prices, we saw billions of dollars in liquid asset inflows and new customers throughout the second quarter,” said broker crypto.
Regarding the future, the company indicated that some numbers, such as the transaction volume, could fall in the coming months.
According to Coinbase:
In July, total trading volume was $57 billion as cryptoactive prices and volatility fell significantly from second-quarter levels.
So far in August, the trading volume level has seen little improvement compared to the July level, but it still remains lower than the volume earlier this year. As a result, we believe the total volume traded will be lower in the third quarter compared to the second.
According to Nasdaq data, Coinbase shares are currently at $279. The company went public through direct listing in April of this year.
CEO sees the company as the Amazon of assets
Trading volumes increased significantly This was because the total volume of Bitcoin fell in relation to the global percentage of spot exchange and also the increase in the activities of other cryptocurrencies, particularly Ethereum.
The brokerage plans to increase the number of assets listed on its platform.
CEO Brian Armstrong said he wants Coinbase to be known as the “Amazon of Assets” and list all legal assets in the industry, according to Reuters.
