Coinbase has more than doubled its second quarter compared to last year, despite seeing a decline in net income over the previous quarter.
This follows the firm’s appointment of three new members to its board of directors, including a former OpenAI executive.
The crypto exchange’s quarterly earnings data shows that the company generated $1.45 billion in revenue during the second quarter of this year. The report follows Q2 seeing a major uptick in the crypto market, with the CoinMarketCap global market cap chart showing significantly higher values compared to the previous quarter.
Furthermore, the company’s net income has drastically fallen to $36 million compared to nearly $1.2 billion in Q1. The Q2 2024 shareholder letter notes that this is partly caused by a fall in crypto values:
Net income included $319 million in pre-tax crypto asset losses on our crypto investment portfolio, the vast majority of which were unrealized. These losses were $248 million after reflecting the tax impact.
Coinbase data concerning consumer transaction revenue shows that it also dropped by 29% compared to Q1, reaching $665 million. Stablecoin revenue — on the other hand — has picked up to over $240 million. The shareholder letter highlights some success of the company’s USDC stablecoin:
Outside the US, we saw USDC become the first stablecoin to achieve compliance with the European Union’s landmark Markets in Crypto-Assets (MiCA) regulatory framework.
The company also highlights the recent regulatory wins by the cryptocurrency industry in the United States. The shareholder letter reads:
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 towards achieving regulatory clarity in the US, which we believe will be a major unlock for innovation in the industry.
The leading exchange’s statement about the cryptocurrency industry seeing major regulatory wins is not without its merits. Republican Senator Cynthia Lummis recently released draft legislation that would finance a Bitcoin (BTC) reserve in part by revaluing the Federal Reserve’s gold certificates. Earlier this month, she announced her plans:
Implement a 1-million-unit Bitcoin purchase program over a set period of time to acquire a total stake of approximately 5% of total Bitcoin supply, mirroring the size and scope of gold reserves held by the United States.
Republican presidential candidate Donald J. Trump also put his weight behind the initiative. After positioning himself as the pro-crypto candidate, he raised $25 million at the Bitcoin 2024 conference in Nashville — a testament to how influential the crypto industry is becoming.
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