 revenue soared during Q2 of 2021, compared the year before, as volatility characterised crypto markets.){kind=link}
Coinbase has lowered its expectations for the coming quarter
Coinbases’s (NASDAQ:COIN) revenue soared during Q2 of 2021, compared the year before, as volatility characterised crypto markets.
The exchange’s revenue rose by more than 1,000% during the past quarter, although Coinbase warned against expecting that to continue as it lowered its expectations for the coming year.
Coinbase confirmed net revenue of $2.03bn, an increase of 27% compared to the previous quarter, the only other time it has posted results since going public in April. Year-on-year it represents a 1,042% rise in net revenue.
Net income also rose by a substantial amount to $1.6bn, up from $32m the previous year.
Trading volumes rose to $462bn for the quarter ended in June, up from the $335bn during the quarter ended in March.
The proportion of trades being made up by bitcoin fell from 39% during Q1 to 24% in Q2.
However, for Q3, trading volumes are expected to be lower than Q2, as the surge in trading levels will cool off, according toto the company.
Coinbase, which generates revenue by facilitating trades on its platform, has benefitted from the adoption of crypto and such assets. The volatility is an area of concern for some and has brought about calls for further regulation.
Chief Financial Officer Alesia Haas said Coinbase is keeping an eye on comments by the US Securities and Exchange Commission (SEC) Chair Gary Gensler, who turned to Congress a week ago seeking more authority to better police cryptocurrency trading, lending and platforms.
“We’re eager to understand the legal framework for the concerns that he has raised and how any of those may impact our product road map,” Haas said. However, the platform is carrying on with plans to expand its range of assets on the platform.
The Coinbase share price closed 3.85% down on Wednesday at $269.67.
Coinbase shares traded at $381 on its New York debut in April, over 50% above its $250 reference price, on a day hailed as a watershed moment for cryptocurrencies on the world financial markets.