Coinbase has published its first reports as a public company. During its April direct listing on the Nasdaq, the cryptocurrency exchange was valued at $ 85.5 billion. The company’s quarterly revenue jumped to $ 2 billion from $ 178 million a year earlier and $ 1.6 billion in the first three months of this year. Market consensus predicted an average revenue of $ 1.8 billion. The real surprise for the market was net profit, which increased 50 times to $ 1.6 billion from $ 32 million in the same period last year. Adjusted net earnings per share soared to $ 7.76 versus the market consensus of $ 2.48. In the past quarter, Coinbase saved $ 737 million in taxes, mainly through tax deductions for employee benefits in the form of stock options when it went through direct listing in April.
The number of authorized Coinbase users at the end of the second quarter was 68 million, up from 56 million at the end of the first quarter, and the number of monthly active users increased by 44% to 8.8 million. The Bitcoin exchange rate in April set a new record, rising above $ 64,000, and later fell sharply, its decline reached 45%. Ethereum rose to $ 4,200 in May and then dropped to $ 1,700. The high volatility of the crypto market correlates well with the company’s earnings. The quarterly trading turnover of the cryptocurrency exchange in the second quarter increased by 38% compared to the previous quarter and amounted to $ 462 billion, of which $ 145 billion (+ 21%) fell to the share of retail investors, and $ 317 billion (+ 47%) to the share of institutional investors.
Currently, there is an increased interest in the cryptocurrency market. For example, according to analysts’ estimates, the number of crypto investors in the US could double by the end of 2021. According to the Gemini study, it is noted that in 2021, American interest in digital assets has significantly increased. For example, 63% of survey participants who are not cryptocurrency holders said they want to learn more about digital assets and purchase them in the future. In addition, the appointment of financier Gary Gensler as head of the SEC, who spoke positively about blockchain, bitcoin and cryptocurrencies, may become a positive moment for the development of the crypto market in the United States. Speaking at a hearing on his candidacy before the Senate Banking Committee, Gensler called digital gold “a catalyst for change.” We doubt that crypto currencies will be recognized as a means of payment in developed countries, but we fully admit that they can be assigned the status of an alternative investment instrument, which will be a historically positive moment in the development of the crypto market.
Coinbase Global is a regulated cryptocurrency company that provides customers around the world with a platform for buying, selling, transferring, and storing digital assets. The Company offers a variety of products and services that enable individuals, businesses, and developers to participate in the cryptoeconomy.