Coinbase Bets Big on Bitcoin but Stumbles in Earnings—Is This the Turning Point Investors Can’t Ignore?
Ever wonder how a powerhouse like Coinbase can be ramping up its Bitcoin stash in a big way — $222 million worth in Q2 alone — yet still miss the mark on earnings so badly that the stock drops 7% after hours? It’s like watching a high-stakes poker game where the chips are piling up on the table, but somehow, the house isn’t winning. Despite the plummet in revenue by 26% and a steep decline in adjusted net income to just $33 million from $524 million in Q1, Coinbase is doubling down on its crypto bets. This paradox begs the question: Is Coinbase playing the long game with Bitcoin, or is it getting caught in the volatility storm that’s rocking the entire crypto market? Buckle up, because this latest earnings report reveals more than just numbers — it uncovers the complex dance between market strategy and investor confidence in the ever-evolving crypto landscape. LEARN MORE.
Coinbase stock falls after Q2 revenue drops 26%, even as firm ramps up Bitcoin buys.
Key Takeaways
- Coinbase stock fell 7% in after-hours trading as Q2 adjusted net income came in at just $33M, down from $524M in Q1.
- Coinbase bought $222M worth of Bitcoin during the quarter, bringing its crypto investment portfolio to $1.8B.
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Coinbase reported weaker-than-expected second-quarter results on Thursday, sending its stock down more than 7% in post-market trading, according to Yahoo Finance data.
While the company posted $1.4 billion in net income under GAAP, bolstered by gains on crypto and strategic investments, its adjusted net income fell sharply to $33 million, down from $524 million in Q1.
The results came as trading volumes slumped across the board. Total revenue dropped to $1.5 billion, down 26% from the previous quarter. Transaction revenue fell 39% to $764 million, with consumer volumes down 45% and institutional volumes off 38%.
Despite the earnings miss, Coinbase continued to expand its Bitcoin holdings, adding $222 million worth of BTC during Q2 through weekly purchases. The crypto investment portfolio now sits at $1.8 billion in fair market value.
For Q3, Coinbase projects July transaction revenue of $360 million and expects subscription and services revenue to land between $665 million and $745 million, supported by higher crypto prices and record USDC market cap.
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