Coinbase smashes Q2 revenue estimates but is expecting a slower third quarter

[Shawn Knight]

The big picture: Shares in Coinbase are trading up more than six percent this morning after the cryptocurrency exchange announced second quarter revenue that smashed expectations. Barring another wild run, however, it seems as though the crypto industry will likely level out in Q3.

Coinbase for the three-month period ending June 30, 2021, generated total revenue of $2.23 billion compared to the $1.78 billion that Refinitiv was expecting. Net income checked in at $1.6 billion, which represents nearly a 4,900 percent increase compared to the same period a year ago.

Cryptocurrency went on a wild run back in April with Bitcoin reaching an all-time high of more than $64,000, and Coinbase was there to capitalize on the frenzy. The company said monthly transacting users (MTUs) reached 8.8 million, an increase of more than 44 percent quarter over quarter. Trading volume was also up in the quarter, hitting $462 billion compared to $335 billion in Q1.

Coinbase finished Q2 with 68 million total verified users.

Coinbase is already seeing signs of slowdown. In July, the company saw MTUs fall to 6.3 million and trading volume slide to $57 billion. So far in August, MTUs and trading volume levels have improved slightly compared to July but are still lower than earlier in the year.

Then again, crypto is notoriously volatile and it wouldn’t be all that surprising to see another late 2021 push. Bitcoin has already recovered some of its losses over the past few months and is currently trading just north of $46,000.

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https://www.techspot.com/news/90751-coinbase-smashes-q2-revenue-estimates-but-expecting-slower.html

 

[BadThad]

$600M in coins stolen recently - crypto was made for criminals and the "get rich quick" wannbe's. Only the exchanges and criminals will consistently make money from crypto - the rest rely on luck and prayer that their coins will not be stolen at some point or the value plummets to zero.

 

[scavengerspc]

$600M in coins stolen recently - crypto was made for criminals and the "get rich quick" wannbe's. Only the exchanges and criminals will consistently make money from crypto - the rest rely on luck and prayer that their coins will not be stolen at some point or the value plummets to zero.

You place your bets and you takes your chances.

 

[adamada72]

The fees are crazy. Not surprised they made bank.

 

[elementalSG]

$600M in coins stolen recently - crypto was made for criminals and the "get rich quick" wannbe's. Only the exchanges and criminals will consistently make money from crypto - the rest rely on luck and prayer that their coins will not be stolen at some point or the value plummets to zero.

$600M in coins stolen recently - crypto was made for criminals and the "get rich quick" wannbe's. Only the exchanges and criminals will consistently make money from crypto - the rest rely on luck and prayer that their coins will not be stolen at some point or the value plummets to zero.

I love how the people who miss the boat on something big always let their frustrations out about missing the boat by bashing whatever it is and then saying that it will “plummet to zero”.

 

[BadThad]

I love how the people who miss the boat on something big always let their frustrations out about missing the boat by bashing whatever it is and then saying that it will “plummet to zero”.

I certainly didn't miss ANY boat. I used my head, 40+ years of investment experience and staying away from these "get rich quick ponzi schemes". Over the decades I've seen thousands of people get scammed out of their REAL money.

If you're ahead in crypto, congratulations, I'm happy for you. But also quite sad for the millions that lost their a$$es.

 

[BadThad]

You place your bets and you takes your chances.

...and then you lose your a$$es.

 

[scavengerspc]

I've seen thousands of people get scammed out of their REAL money

Do you mind if I ask how they were scammed?

...and then you lose your a$$es.

Odd brother. Because I gained an almost embarrassing amount of a$$e$ when I cashed out last Spring.

I used my head, 40+ years of investment experience

And honestly, I used my zero number of years of investment experience and recognized an opportunity 8 years ago. Hence, all my new a$$e$.

 

[elementalSG]

Do you mind if I ask how they were scammed?


Odd brother. Because I gained an almost embarrassing amount of a$$e$ when I cashed out last Spring.


And honestly, I used my zero number of years of investment experience and recognized an opportunity 8 years ago. Hence, all my new a$$e$.

Haven’t held as long as you at 4 years, but pretty sure 4 and 8 years doesn’t fit under the “get rich quick” definition the guy bashing crypto said. Wish it wasn’t so obvious that he missed the boat with all his “40+ years of investment experience”.

 

[Karlos95]

I certainly didn't miss ANY boat. I used my head, 40+ years of investment experience and staying away from these "get rich quick ponzi schemes". Over the decades I've seen thousands of people get scammed out of their REAL money.

If you're ahead in crypto, congratulations, I'm happy for you. But also quite sad for the millions that lost their a$$es.

Haven’t held as long as you at 4 years, but pretty sure 4 and 8 years doesn’t fit under the “get rich quick” definition the guy bashing crypto said. Wish it wasn’t so obvious that he missed the boat with all his “40+ years of investment experience”.

These guys that have been in the game for so long can't handle that new investments are making stupid amounts more percentage gains than their slow stock investments (some are now becoming jokes).

Also, nothing is more manipulated than the stock market, fact. So I'd feel much safer investing in crypto than stocks at this point (obviously ones with a reputation and not ones that are literal pump and dumps, like most penny stocks on the ASX), especially where we are heading globally. Everything record prices.

Crypto will tank at the end of the year (same 80% dump every 5 years) and then recover after 2 - 3 years. Everything else will crash 40 - 50% and take 10 years to recover (minus precious metals and real estate). I feel real estate has a change of a 30 - 40% crash but will recover over 5 years from stupid gov bailouts and what not.

 

[scavengerspc]

but pretty sure 4 and 8 years doesn’t fit under the “get rich quick” definition the guy bashing crypto said.

The only way to get rich quick now is to mine them. I myself bought them and never did mine.