Coinbase Reports $1.4 Billion in Second-Quarter Revenue
Coinbase reported $1.4 billion in total revenue in Q2 2024, marking a period of continued growth and progress in the cryptocurrency industry. The company’s earnings report said it also made progress toward regulatory clarity in the U.S., a key development for the broader crypto economy.
Coinbase Reports Q2 2024 Earnings and Letter to Shareholders; Profits Dip
Coinbase’s Q2 2024 results highlighted a mixed financial performance. Despite a 27% decline in trading revenue from the previous quarter to $781 million, the company saw a significant increase in subscription and services revenue, which grew 17% to $599 million. The company said diversifying revenue streams contributed to a net profit of $36 million. However, the quarter was also impacted by $319 million in pre-tax crypto asset losses, mostly unrealized, as the value of crypto assets fluctuated.
In addition to its financial performance, Coinbase explained its focus on product innovation, particularly improving the usability and accessibility of its platform. The company reported a 300% quarter-over-quarter increase in transactions on Base, its layer-two (L2) solution, and expanded its offering with the introduction of smart wallets. These developments are part of Coinbase’s broader strategy to reduce friction in on-chain transactions and drive broader adoption of cryptocurrencies. Additionally, the company mentioned the expansion of USDC, facilitated by its partnership with Stripe.
On the regulatory front, Coinbase has made significant progress in advocating for clearer crypto regulations in the United States. The company supported the “Stand With Crypto” initiative, which has garnered over 1.3 million supporters. Additionally, the company sees the approval of Ethereum exchange-traded funds (ETFs) in the U.S. and USDC’s compliance with the European Union’s MiCA framework as important milestones in establishing a more defined regulatory landscape for the crypto industry. Coinbase also noted that it has released its Q2 2024 earnings report on-chain.