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Coinbase announced revenues for the second quarter of 2021

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Coinbase published a letter to its shareholders full of data on the company’s revenues for the second quarter of 2021.

The platform reported on the development and results achieved in the Q2 period compared to the previous quarter. Coinbase specifically calls this period “strong, with growth and diversification across the platform.”

Among the reported numbers, Coinbase highlights the growth of 44% of retail users performing monthly transactions (MTUs) on the platform, of which 27%, corresponding to 2.4 million users, were also involved in non-investment products on offer, such as staking.

The total number of authenticated users on the platform is currently 68 million, with over 9,000 institutions continuing to expand their portfolios through Coinbase. Not only that, the platform emphasizes this institutional interest as follows:

“According to AUM, 10% of the 100 largest hedge funds have decided to join Coinbase, with many clients choosing us as their exclusive partner. In recent months, we have also partnered with industry leaders, including Elona Musk, PNC Bank, SpaceX, Tesla, Third Point LLC and WisdomTree Investments. […] Institutions are becoming more sophisticated and are trying to do much more than buy, sell and store BTC. Our institutional customers are increasingly seeing Coinbase as a point of contact for the services they need, including trading, custody, lending, revenue generation, data and more across a wide range of crypto services. ”

Another important aspect of this second quarter of 2021 for Coinbase was the acquisition of two licenses outside the United States, which would allow the platform to operate in more and more areas applied abroad.

The first is a license from the German Federal Finance Office (BaFin), which allows Coinbase Germany GmbH to be one of the first companies in the European Union to have it. While the second concerns the registration of Coinbase with the JFSA or Japanese Financial Services Agency.

Coinbase Revenues: Figures published by the platform

Letter stakeholders are also provided with figures on Coinbase’s revenues.

“We generated $ 2.0 billion in net revenue, including $ 1.9 billion in transaction revenue and more than $ 100 million in subscription and service revenue. Net income was $ 1.6 billion and adjusted EBITDA was $ 1.1 billion. ”

Coinbase specifically mentions different types of income. Here are some of them:

  • Second-quarter retail transaction revenue was $ 1.8 billion, up 26% from the first quarter
  • Revenue from institutional transactions was $ 102.4 million, up 20% from the first quarter.
  • Subscription and service revenue in the second quarter was $ 103 million, which is 82% more than in the first quarter.
  • Custody service revenue increased $ 32 million.

In addition to wanting to reinvest Coinbase in business for further growth, Coinbase emphasizes its mission to reach 1 billion total authenticated users and, in a way, expand mass adoption of cryptocurrencies..

Class action

In that letter, it does not appear to mention to its shareholders the class action brought against it at the end of last month. Coinbase and its CEO Brian Armstrong were in fact sued in connection with COIN’s debut on the Nasdaq. The complaint alleges that the registration statement and prospectus used to offer the company were false and misleading.

Specifically, Scott + Scott Attorneys LLP announced that in a class action lawsuit against Coinbase Global Inc. Donald Ramsey will be the main prosecutor.

In addition to Armstrong, the lawsuit would also target other investors and managers who allegedly benefited from the IPO. Some of the names that have been released are: Marc Andreessen, Fred Ehrsam, Fred Wilson, AH Capital Management, Tiger Global Management, Union Square Ventures and Viserion Investment.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.
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