Coinbase Reports $1.4B Q2 Revenue Amidst Regulatory Breakthroughs

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NAIROBI (CoinChapter.com) – Coinbase reported a 108% increase in net revenue for Q2 2024, marking its third consecutive profitable quarter. The crypto exchange generated $1.4 billion in revenue, driven by growth in subscription and services revenue, which rose 17% from Q1 to nearly $600 million. Despite an 11% decline from the previous quarter, Coinbase’s financial position improved, with $7.8 billion in USD resources, up $733 million from the previous quarter.

Coinbase earnings report — *Coinbase‘s Q2 2024 earnings report. Source:* *Shareholder* Letter

Transaction revenue reached $781 million, doubling year-over-year but falling 27% from Q1. Consumer transactions contributed $665 million, below Zacks’ $695 million estimate. Institutional transaction revenue reached $64 million, surpassing forecasts of $55 million. Coinbase attributed this rise to its role as a custodian for several asset managers issuing spot Bitcoin exchange-traded funds.

Regulatory Wins and Innovation Drive Coinbase Forward

In Q2, Coinbase advanced its regulatory agenda by supporting the “Stand With Crypto” initiative, which gained over 1.3 million advocates. This effort helped secure bipartisan backing for crypto regulations in the United States. Key developments included the approval of Ethereum ETFs and USDC’s compliance with the European Union’s MiCA framework.

Product innovation also played a crucial role in Coinbase’s Q2 performance. The company reported a 300% increase in transactions on Base, its Layer 2 solution, and introduced smart wallets to enhance platform utility.

Additionally, Coinbase expanded its USDC offerings through a partnership with Stripe, aiming to reduce friction in on-chain transactions.

Despite facing $319 million in pre-tax crypto asset losses due to market fluctuations, Coinbase reported a net income of $36 million for the quarter. These losses were primarily unrealized, reflecting lower market prices at the end of Q2.

Coinbase Global Inc. (NASDAQ: COIN) saw its stock price close at $212.64 on August 1st, a 5.22% decrease from the previous day. The stock dropped $11.72 during regular trading hours. However, in after-hours trading, Coinbase shares increased by 3.23% to $219.50. This change followed the company’s Q2 earnings report, which detailed revenue growth and regulatory progress.

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