Coinbase Exceeds Its Own Expectations by Reporting Revenue of $2.23b

Published: 2021-08-11 23:48:27

One of the leading crypto exchanges in the world, Coinbase, reports a revenue of $2.23b. What is interesting is that this comes as a surprise even for Coinbase themselves. As a matter of fact, the company expected to net roughly $1.78b, and the amount of $2.23b is a total surprise. We can easily say that this news is somewhat expected. That is especially evident if you know that since 2020, Coinbase’s profit is up by more than 4.900%. This amount results in Coinbase getting a whopping $1.6b net profit.

To break things down, the high Coinbase revenue is due to the 3.45 per shares price. The company expected the shares to go at $2.33, yet the surge of new users seems to greatly influence these numbers. More specifically, there are now 8.8 million users on Coinbase. This is 44% more in comparison with Q1. Consequently, the trading volume is also up 38%, or up to $462m.

Just to give you a perspective, even while bitcoin prices went down during the quarter, Coinbase still netted $2b revenue. Out of these $2b, $1.9b are from transactions, while the additional 100m are from extra services and subscriptions. However, the prices drop in bitcoin also resulted in 15% less bitcoin trading volume for the company. Or from 39% in Q1 to 24% in Q2.

Whatever the case, a survey by Refinitiv suggests that Coinbase shares will only go up. Specifically, up to 7.76 per share. This can potentially result in a revenue of 6.29m by the end of the year.

We can say that Coinbase’s revenue of $2.23b is somewhat expected. Especially since back in April Coinbase was for a brief moment valued at $100b. This resulted in Coinbase shares opening at $381 per share. Consequently, resulting in one of the more significant achievements by a crypto-company, ever.

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