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Cryptoexchange Coinbase Sharply Increases Profits Amid Cryptocurrencies Volatility

Coinbase rallied 2.1% on Tuesday following its Q2 financial results. The indicators turned out to be higher than those predicted by analysts.

Source: freepik.com

Source: freepik.com

The revenue of the largest American cryptocurrency exchange Coinbase for the reporting period amounted to $ 2.23 billion against $ 1.78 billion predicted by analysts. Earnings per share were $ 3.45 versus $ 2.23 expected. The company’s net profit reached $ 1.6 billion, an increase of 4900% over the year. Such impressive indicators are explained by the high volatility of cryptocurrency rates, their dynamics determines the company’s financial results.

Coinbase had net revenue of $ 2.0 billion, of which $ 1.9 billion came from transactions, and the remaining $ 100 million came from subscriptions and other services. At the same time, the price of bitcoin dropped by 41% over the quarter. The audience of crypto exchange users who make monthly transactions reached 8.8 million (an increase of 44% compared to the previous quarter), the trading volume over the same period increased by 38% to $ 462 million. Bitcoin trade volumes accounted for 24% of the total. cryptocurrencies. For comparison: in the first quarter, this figure was 39%.

In the third quarter, Coinbase expects a decrease in user activity compared to the second quarter. At the end of the year, analysts predict the company earnings of $ 7.76 per share, revenue could reach $ 6.29 billion.

Coinbase went public in April 2021, in just a few minutes its shares rose by 58%, having risen in price to $ 381. The company’s value reached $ 100 billion, which was a landmark event for the entire cryptocurrency industry.

About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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