Crypto exchange giant Coinbase has revealed its bumper profits in its second-quarter shareholder letter, released on August 10. The crypto trading platform acknowledged that the period was strong for growth on the back of a crypto market bull run. The highlight from the report is Q2 net revenue of $2 billion, its highest quarter ever. This has resulted in a whopping net income of $1.6 billion for the period. Coinbase went public earlier this via a direct listing on Nasdaq.
Coinbase recorded more than double profits that of the previous quarter.
Coinbase recorded more than double profits from the previous quarter, which saw the company net $771 million. Coinbase’s earnings per share came in at $3.45, much higher than analyst estimates of $2.33. The figures are not surprising as the crypto firm derives 95% of its profits from trading fees which are among the highest in the industry. It reported $1.9 billion in transaction revenue and over $100 million in subscription and services revenue. The report revealed that monthly transacting users on the platform grew to 8.8 million, up 44% from Q1 2021, with verified users totaling 68 million at the end of the period.
Assets on the platform totaled $180 billion as of June 30.
The quarterly report noted, “We now have over 9,000 institutions who continue to deepen and broaden their activities in the crypto-economy and more than 160,000 ecosystem partners who are using our crypto tools and services to engage with their own customers.” The report further added that as of June 30, assets on the crypto platform totaled $180 billion. Crypto assets on the platform represented 11.2% of the total market capitalization of crypto assets. At the time of writing total market cap had increased to $1.94 trillion.