Coinbase have announced their quarter two results, which have surpassed estimates, along with huge growth in users and trading volume.
The reported revenue for Coinbase was $2.23 billion. Coinbase reported to have 2,176 employees cumulatively, up 450 this quarter. They also revealed they are providing services to SpaceX and Tesla and have gained around 1,000 institutional clients, such as hedge funds.
Cryptocurrencies have grown hugely in popularity over the last year – with Coinbase recently listing Dogecoin on its platform – the cryptocurrency which has gained lots of traction recently, particularly from Tesla CEO Elon Musk.
Trading volume on Coinbase reached $462 billion, which is over $100 billion higher than Q1 and above expectations. Coinbase has also reached a high of 68 million users, further confirming the popularity of cryptocurrencies.
Earlier this year Coinbase had its IPO (Coinbase is still trading lower than its initial IPO price) and it is fair to say this year has been great for the exchange platform. However despite Coinbase posting strong results, it is quickly becoming a crowded industry with lots of competition and threats of new regulation over cryptocurrencies. Therefore, Coinbase must continue to find ways to stay ahead of the pack.
Following on from these results, it would also appear crypto is beginning a comeback from its recent drop in value. If a rally in crypto prices is coming, it can only be more good news for Coinbase as more users invest with and join the platform.
Following the results, Coinbase shares were trading 3.5% higher.