Coinbase Revenue Jumps to US$1.45 Billion, Net Income Turns Positive

The biggest US crypto exchange’s revenue jumped to US$1.45 billion, slightly above the forecast of analysts surveyed by Bloomberg. Net income was US$36 million

Coinbase reported a net income of US$36 million, or 14 cents a share, in the second quarter, reversing a loss in the year-ago period.

The biggest US crypto exchange said its revenue rose to US$1.45 billion in the three months ended June 30, compared with a loss of US$430 million a year earlier. The figure was also slightly higher than the average analyst estimate of US$1.43 billion, according to a survey by Bloomberg.

Of the total revenue, about US$210 million came from transaction fees, Coinbase said in a shareholder letter on Thursday.

Coinbase said it expects current-quarter subscription and services revenue to be in the range of US$530 million to US$600 million.

The company added that it booked an impairment charge of US$319 million in the second quarter to write down the value of cryptocurrencies held in its investment portfolio.

Coinbase began applying a new accounting rule, which requires companies to mark digital assets to market each reporting period, in the first quarter.

The biggest US crypto exchange said it had about US$4.3 billion in cash and cash equivalents at the end of June, compared with US$6.1 billion at the end of March.

Coinbase shares rose nearly 3% to about US$212 in after-hour trading on Thursday. The shares are up 22% this year.

“Our energy is going into creating more and more diversified revenue stream,” Haas said.

Coinbase’s revenue from non-trading businesses, such as interest income related to the USDC stablecoin, has become increasingly important amid a slowdown in trading.

“We are an all-weather company, with revenue diversification,” Haas said.

Coinbase’s total expenses, excluding impairment charges, rose to US$1.1 billion in the second quarter, compared with US$798.6 million a year earlier.

The company said it had 95 million verified users at the end of June, up from 89 million at the end of March.

Coinbase added that it had about 13,000 employees at the end of June, compared with 11,200 at the end of March.

Coinbase is still facing uncertainty over a lawsuit filed against it by the Securities and Exchange Commission last year, and the US elections this fall could add another twist, as crypto companies try to push new crypto-friendly regulation through legislature.