Coinbase has reported impressive revenue figures for the quarter ending June 30, despite a challenging crypto market. The company posted total revenue of $1.38 billion, nearly doubling from $663 million a year ago, but slightly below the $1.58 billion reported in the first quarter.
However, net income saw a steep decline, falling to $36 million from $1.17 billion in the previous quarter. This drop was attributed to a $248 million reduction in the value of crypto assets held by Coinbase.
Transaction revenue, which is a major income source for Coinbase, came in at $664 million, down about 30% from the first quarter. On the brighter side, revenue from subscriptions and services, which includes stablecoin and blockchain mining revenue, rose by 17% to just under $600 million.
Coinbase, with a market cap of over $50 billion, primarily generates revenue through transaction fees on crypto trades. The first quarter of 2024 was particularly strong, fueled by excitement over Bitcoin ETFs and the token’s recovery from the crypto winter. However, the market peaked around March, leading to a decline in transaction revenue for Coinbase’s second quarter. This was partially offset by increased revenue from Coinbase’s USDC stablecoin, issued in partnership with Circle, and other subscription services.
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