Crypto Exchange Coinbase has reported in its second quarter report to investors that it pulled in $1.45 billion in revenue for the quarter while recording a decline in profits.
Coinbase shared its second-quarter earnings in a shareholder letter to its investors released on the company’s official website yesterday.
The letter highlighted the earnings made by the company as well as its strides in other aspects including innovation of new products and improve the user experience of the platform.
“ Q2 was a quarter of strong progress for Coinbase and the crypto industry. In addition to solid financial results and continuing to build trusted products to help drive crypto adoption, Coinbase and the crypto industry made great strides toward achieving regulatory clarity in the US, which we believe will be a major unlock for innovation in the industry.
We generated $1.4 billion in total revenue and $36 million in net income* in Q2. Adjusted EBITDA was $596 million, and Q2 marked our 6th consecutive quarter of positive Adjusted EBITDA.
We are making good progress on diversifying our revenues, as subscription and services revenue reached nearly $600 million. Lastly, our balance sheet strengthened to $7.8 billion in $USD resources, up $733 million Q/Q. We also saw extraordinary strides in achieving regulatory clarity, which serves as a vital unlock for Coinbase and the broader crypto economy.
Advancing crypto legislation is now a mainstream issue. Stand With Crypto has amassed over 1.3 million crypto advocates, many in swing states, politicians on both sides of the aisle have taken notice, and there is real energy in both the House and Senate around passing legislation.
We will continue driving this forward through the fall elections and beyond. On the product front, we made innovative updates to expand utility, speed, efficiency, and ease of use in Q2.
These updates are highlighted by 300% Q/Q growth in the number of transactions on Base — our Layer 2 solution — the expansion of USDC through partnerships and compliance, the launch of smart wallets, improvements to Simple and Advanced trading, and the expansion of Coinbase Financial Market and derivatives offering” Coinbase Posted
Coinbase more than doubled its second-quarter revenue year over year but recorded a slight decline compared to the previous quarter.
Coinbase also mentioned that it had a $319 million in pre-tax crypto asset loss on its crypto investment portfolio and an increase in stablecoin revenue, to $240.4 million, up from $197.3 million in the previous quarter.
Coinbase is one of the leading crypto exchanges in the industry alongside Binance and Bybit.
What to Know
- Coinbase which was previously headquartered in San Francisco no longer has a headquarters as it switched to a remote-first company with its staff scattered around the world.
- The Company in the Q2 report stated that in the second quarter of the year it made innovative product updates to expand utility, speed, efficiency, and ease of use.