• Coinbase reports revenue more than 1,000% higher than this time last year
  • Citing increased trading volume and new users, Coinbase revenue totaled $2.2 billion for the second quarter of 2021

Despite a widespread selloff in the cryptocurrency market, Coinbase Global (ticker COIN) reported higher-than-expected second quarter earnings Tuesday, bolstered by trading volumes and an increase in users.

Shares of the digital asset exchange rose as much as 2.1% in the extended trading session Tuesday following the earnings report release.

Coinbase reported $2.23 billion in revenue, exceeding the $1.85 billion expected from analysts surveyed by Bloomberg. 

Profit for the second quarter was $1.6 billion, compared with $32 million in 2020. 

For the first time in its history, Coinbase reported a higher trading volume of ethereum than bitcoin with 26% of trades being in ETH. Twenty-four percent of trades were in bitcoin, the exchange reported. 

Coinbase Exceeds Q2 Earnings Estimates; Reports $2.23B
Source: Coinbase

Coinbase also reported an increase in institutional trading volume, after the exchange emphasized this as a growth area in its first quarter earnings

In its shareholder letter, Coinbase revealed that 13% of Americans have traded cryptocurrencies in the last year. The exchange cited that 24% of Americans have traded stocks. 

“These adoption trends paired with recent government attention on crypto as a revenue source suggests we have reached an inflection point,” Coinbase said in the letter. “Crypto has arrived.”

Share price performance

The results follow disappointing share price performance. After nearly hitting $430 shortly after its initial public offering, COIN fell as much as 51.5% to $208. 

“With shares down by such a large percentage, there is a chance we could see some re-engagement, according to analysts at Goldman Sachs,” said Fiona Cincotta, senior financial markets analyst at City Index. 

At the time of publication, COIN was trading at $269.67.

  • Blockworks
    Senior Reporter
    Casey Wagner is a New York-based business journalist covering regulation, legislation, digital asset investment firms, market structure, central banks and governments, and CBDCs. Prior to joining Blockworks, she reported on markets at Bloomberg News. She graduated from the University of Virginia with a degree in Media Studies. Contact Casey via email at [email protected]