America’s largest crypto exchange, Coinbase, has released its Q2, 2021, report, which reveals net profits of $1.6 billion.
This is a whopping increase of 4,900% compared to the $32 million recorded in the same period in 2020.
The growth was accompanied by a 38% increase in total volume compared to Q1, 2021, with the firm processing $462 billion of volume during the quarter.
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Moreover, the exchange’s total retail trading volume was up 21% compared to the previous quarter.
Earnings per share came in at $3.45, compared to estimates of $2.33.
Coinbase reported the total trading volume diversified beyond bitcoin into ethereum and other crypto assets.
Approximately 24% of the company’s total trading volume for the quarter was concentrated in bitcoin, down from 39% in Q1, 2021.
Retail Monthly Transacting Users (MTUs) grew to 8.8 million, up 44% from Q1, 2021, largely driven by:
- A strong crypto market environment
- Product innovation
- The ability to support more asets for trading
- Marketing efforts
- Growth in customers and high trading volumes (for institutional traders)
The verified user base crossed 68 million while adding over 9,000 institutions.
The report has also acknowledged growing regulatory interest in the crypto sector and reiterates that the crypto community ‘speaks in one voice.’
Nevertheless, the firm has indicated that trading volume is expected to decrease in Q3, 2021.
Here is a quick breakdown of the Coinbase Q2, 2021 stats:
- Net profits hit $1.6 billion – a 4, 900% growth YoY
- Total verified users crossed 68 million
- Total institutional customers crossed 9, 000
- Total revenue was $2.2 billion – $1.9 billion was transaction revenue and $103 million was subscription and services revenue
- $462 billion in processed volumes – a 38% increase compared to Q1, 2021
- Only 24% of total trading volume was concentrated in bitcoin – down from 39% in Q1, 2021
- Total retail trading volume was $145 billion – a 21% increase from Q1, 2021
- Total retail transaction revenue was $1.8 billion – a 26% increase from Q1, 2021
- Total institutional trading volume was $317 billion – a 47% increase from Q1, 2021
- Total institutional transaction revenue was $102.4 million – a 20% increase from Q1, 2021
- Subscription and services revenue was $103 million – a 82% increased from Q1, 2021
- Assets on the Coinbase platform totaled $180 billion – 11.2% of the total market capitalization of crypto assets
- Total operating expenses was $1.4 billion
- Total number of employees was over 2, 000 employees – added 450 new employees
Coinbase believes that crypto has reached an inflection point despite anticipated volatility in the near term. The exchange however intends to remain focused on long-term execution.
According to Coinbase:
“We believe the products that the most crypto-forward people are using today such as DeFi will be used by mainstream customers soon, and by institutions soon after that. Coinbase has our eye on the future and is investing to ensure we are bringing the next generation of products to all so we can increase economic freedom in the world.”
– Q2, 2021 Report, Coinbase
As as result of this continued and expected growth in the industry, Coinbase intends to spend 12 – 15% of its net revenue in 2021 for sales and marketing.
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RECOMMENDED READING: Coinbase CEO: Digital Yuan a Threat to U.S.
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