Shares of Coinbase (NASDAQ:COIN) are up 2% in pre-market trading after the cryptocurrency exchange reported second-quarter earnings that were much stronger than analysts had expected.
The largest cryptocurrency exchange in the U.S. reported revenue of $2.23 billion U.S. versus $1.78 billion U.S. that analysts expected. Earnings per share came in at $3.45 U.S. compared to $2.33 U.S. that was expected.
Coinbase’s net profit for the second quarter totaled $1.6 billion U.S., up 4,900% from a year earlier, following a volatile stretch of trading for cryptocurrencies such as Bitcoin and Ethereum. Bitcoin prices fell about 40% during the second quarter.
Monthly transacting users on Coinbase grew to 8.8 million, up 44% from the previous quarter, while trading volume rose 38% to $462 billion U.S. from the previous quarter.
The company reported that total trading volume diversified beyond Bitcoin. Approximately 24% of the company’s total trading volume for the quarter was concentrated in Bitcoin, down from 39% in the first quarter.
While the company offered no formal guidance, it did say trading volume will be lower in the current third quarter as cryptocurrency prices stabilize. For the full year, analysts surveyed by Refinitiv expect EPS of $7.76 U.S. on revenue of $6.29 billion U.S.
Coinbase went public in April of this year via a direct listing, and the company’s shares opened at $381 U.S. per share, giving the company a valuation of $100 billion U.S., a landmark event for the cryptocurrency industry.
Coinbase stock has fallen nearly 30% since the company’s stock market debut on April 14, while the NASDAQ exchange has risen nearly 7% over the same period of time.
