Coinbase revenues rocket over 1,000% amid wild swings in crypto markets

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Coinbase Global Inc (NASDAQ:COIN) (NASDAQ:COIN)’s revenues saw an increase of over 1,000% in its second quarter as wild swings in cryptocurrency markets over the summer caused a flurry of trading on its platform.


In its results for the period, the group reported net revenue of US$2.03bn, up from US$178mln a year ago, while adjusted earnings (EBITDA) soared to US$1.15bn from US$61mln.


READ: Coinbase snaps up crypto startup Zabo


The strong upswing in the numbers was driven by a jump in trading volumes in the quarter to US$462bn compared to US$28bn a year ago, while the number of monthly transacting users (MTU) on the platform ballooned to 8.8mln from 1.5mln in 2020.


Coinbase attributed the strong MTU growth to the crypto market environment during the quarter as well as product launches, marketing and a growing number of crypto assets supported on its trading platform.


The firm also said it now has over 9,000 institutions using its services as well as more than 160,000 ecosystem partners using its crypto tools and services to engage with their own customers.


Heading into its third quarter, the company said MTUs and trading volumes in July were 6.3mln and US$57bn respectively as crypto asset prices and volatility declines “significantly” from levels seen in the prior quarter, although the levels had slightly improved into August. As a result, the firm said it expected MTUs and volumes to be lower in the third quarter compared to the second.


Looking ahead, Coinbase said it is updating its full-year 2021 MTU scenarios to reflect its current performance and market conditions, although it reiterated its high-end forecast of average MTUs of 8mln as well as a low end figure of 5.5mln.


“Q2 was a strong quarter for Coinbase with a record number of users engaging more deeply in our products and services. A recent survey from the University of Chicago suggests 13% of Americans have traded crypto assets in the last year compared to 24% for stocks. These adoption trends paired with recent government attention on crypto as a revenue source suggests we have reached an inflection point. Crypto has arrived,” the company said.


The results sent the shares up 0.8% to US$271.88 in after-hours trading in New York overnight.

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