Coinbase (Coin) reported worse than its expected second-quarter results on Thursday, lowering its shares by 7% in post-market trading.
Crypto Exchange has total revenues of $1.5 billion, up from $1.45 billion in the same period last year, but Factset estimates are slightly below $1.59 billion.
Earnings adjusted prior to interest, tax, depreciation and amortization (EBITDA) were $512 million, from $596 million the previous year.
The results show that Coinbase continues to be susceptible to the crypto market cycle. It’s bitcoin
Ether (ETH) was promoted to New Wheley’s high during the second quarter, with trading volume dropping quarterly, Coinbase said in a press release. As a result, trading revenue was $764 million, down 39% from the first quarter.
Coinbase’s report reported its own quarterly results on Wednesday following a bright performance from rival Robinhood (Hood). Hood, which has risen 160% since the start of the year, beat expectations after seeing a $28.3 billion crypto trading volume in the second quarter.
Meanwhile, Coinbase continues to lean towards its dual identity as both a retail trading hub and an institutional crypto infrastructure provider. The company launched its management services for Spot Bitcoin ETFs, expanded its staking services and further advances its basic layer 2 network, but these businesses continue to be trading revenues.
“In the second quarter, Coinbase made significant progress in leading its financial system to On-Chine by expanding access to transactions through innovative derivative products, listing more spot assets and expanding the expansion it offers in markets around the world,” the company said in its revenue release.
Discover more from Earlybirds Invest
Subscribe to get the latest posts sent to your email.
