This week, Coinbase released its Q2 2024 results. Despite a decline from Q1, the company saw its revenue double compared to last year. What are the key stocks to remember?
Coinbase Releases Q2 2024 Figures
Due to its listing on NASDAQ, Coinbase is required to report its results every quarterthus making it possible to judge the company's performance.
This week, the famous cryptocurrency platform shared its figures for the second quarter, whose $1.38 billion in revenue shows an increase of more than 100% compared to the $663 million in the second quarter of 2023. Despite everything, this still represents a decrease of around 11% compared to the previous quarteras a direct result of a market slowdown:
Figure 1 — Coinbase Results for the Last 5 Quarters
💡 How to buy Coinbase (COIN) stock?
Despite a slight decline in turnover this quarter, The company, however, draws positive conclusions from this.particularly at the global ecosystem level with better regulatory prospects in the United States:
Q2 was a strong quarter for Coinbase and the crypto industry. In addition to strong financial results and continued efforts to build trusted products to drive crypto adoption, Coinbase and the crypto industry made significant strides toward regulatory clarity in the U.S., which we believe will be a major driver of innovation in the industry.
Thus, Coinbase calls this change in polarity in the United States a “vital unlocking“.
Coinbase: Sign up for the world's most reputable crypto exchange
A major role in ETFs
One of the highlights of 2024 for Coinbase is its role in spot ETFsboth for Bitcoin (BTC) and Ethereum (ETH). And for good reason, the company acts as a trusted custodian for almost all of them:
“In Q2, Coinbase won custody mandates with 8 of 9 ETH ETFs, building on our foundation as the trusted primary custodian for 9 of 11 U.S. BTC ETF products.”
Thus, these missions participate in “to a lesser extent” has provide an additional source of revenue for Coinbase. This remains, however, marginal compared to the entire balance sheet, with the company's total custody activities representing 35 million dollars.
Another notable point in these quarterly figures is the total cash held by Coinbase for its own account. It amounts to $7.8 billion, mainly placed in bonds:
Figure 2 — Liquidity held by Coinbase
👉 Also in the news — MicroStrategy bought Bitcoin again for $11.4 million
As I write these lines, Coinbase stock was trading at nearly $214 in pre-market tradingup 1.54%, all for a market capitalization of more than $52 billion. In addition, the platform would total $77.5 billion in assets under management, according to Arkham data.
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Source: Coinbase
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Since 2021, I have devoted my free time to seriously training myself on cryptocurrencies in order to acquire as much knowledge and credibility as possible. I often have the opportunity to conduct interviews with influential figures in the blockchain industry. I also conduct in-depth analyses on Web3 themes to offer exclusive content to Cryptoast readers.
Vincent Maire
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