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 a strong one for growth on the back of a crypto market bull run.
The key figure to take 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. Profits were more than double that of 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 hardly surprising considering that Coinbase 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 noted 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. It also noted an increase 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.”
The report added that as of June 30, assets on the 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.
Speaking on CNBC today, Anthony Pompliano said that everyone is underestimating Coinbase and Bitcoin, adding that Entertainments giant AMC should get some for their portfolio.
For the first time, Ethereum trading volume was actually greater than Bitcoin for the period with 26% ETH compared to 24% BTC. It added that total trading volume in Q2 was $462 billion, an increase of 38% compared to Q1’s $335 billion.
“In Q2, our total Trading Volume continued to diversify beyond Bitcoin into Ethereum and other crypto assets.”
It attributed this flippening to growth in DeFi, NFT’s, and ETH 2.0 staking. At the time of press, BTC was trading down slightly at $45,590 while ETH had gained a little on the day to reach $3,160, according to CoinGecko.