Coinbase’s Crypto Empire

Although the cryptocurrency represented by Bitcoin suffered a cut in the market in the second quarter, the surge in trading volume still kept the cryptocurrency exchanges in a state of “drought and flooded income”.

After the US stock market on Tuesday, August 10, Coinbase Global (trade code COIN), the parent company of Coinbase, the largest U.S. cryptocurrency exchange established in 2012, announced its second quarterly financial report since its listing in mid-April this year.

According to the financial report, Coinbase achieved revenue of US$2.227 billion in the second quarter, compared with US$186 million in the same period last year, and the market expected it to be US$1.78 billion. The company achieved a net profit of US$1.6 billion, a year-on-year increase of nearly 49 times.

In terms of business data, as of June 30, the transaction scale of Coinbase was US$462 billion, much higher than the US$28 billion in the same period last year; active trading users reached 8.8 million, an increase of 44% from the previous quarter. However, for the third quarter performance guidance, Coinbase said that in July this year, the monthly active trading users fell to 6.3 million, and the transaction volume fell back to 57 billion US dollars. Although the data has rebounded slightly since August, it is still weaker than the level at the beginning of the year. Therefore, the company believes that the operating data in the third quarter will be lower than in the second quarter.

Institutional blessing

In Coinbase’s financial report, we found that large institutional clients are constantly joining the Coinbase ecosystem.

Coinbase disclosed in its financial report that 10% of the top 100 hedge funds in terms of asset management scale have cooperated with Coinbase.

In recent months, Coinbase has also reached partnerships with industry leaders including Musk, SpaceX, Tesla, Third Point, and Wisdom Tree Investments. In addition, Coinbase is working with PNC Bank, the fifth largest bank in the United States, on an undisclosed crypto project that will enable its customers to seamlessly enter cryptocurrency investments.

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Financial report data shows that at present, more than 9,000 financial institutions are using Coinbase. As Coinbase continues to expand, its institutional business will continue to grow.

At the same time, investment institutions are also increasing their holdings of Coinbase stock. As of the quarter ended June 30, a total of 313 institutions held 55,258,300 shares of Coinbase. Compared to the first quarter, there were an increase of 306.

In addition, Coinbase obtained two key licenses in the second quarter, which will benefit Coinbase’s international expansion. In Japan, Coinbase has successfully registered with the Financial Services Agency of Japan as an encrypted asset trading service provider. In Germany, its subsidiary Coinbase Germany obtained a cryptocurrency custody and trading license from the German Federal Financial Administration, which is the first in Germany.

Investment territory

In fact, they first ensured that they are open enough, not to fight alone, and have supported many smart teams in the encryption ecosystem.

In terms of investment and mergers and acquisitions, Coinbase has stood out from its competitors and become the most active one. From a long-term perspective, it will eventually grow into a very diversified business group.

According to Golden Finance statistics, as of press time, Coinbase has invested in or acquired 72 projects, covering cryptocurrency infrastructure, DeFi, NFT, algorithmic stable currency, blockchain social media, Web 3.0, etc., including Compound, Etherscan, etc. , Synthetix, and Indian crypto unicorn CoinDCX.

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Interestingly, among the huge earnings of Coinbase, retail trading income is US$1.828 billion, accounting for 80% of trading income. Coinbase attributed this to the increase in the number of monthly retail trades in April and May, as well as marketing and new crypto assets. For this reason, when asked about the listing of DogeCoin on Coinbase during the second quarter earnings conference call, Coinbase CEO Brian Armstrong stated that Dogecoin is one of the 22 cryptocurrencies listed on Coinbase in the second quarter. We don’t know which cryptocurrencies will rise and win, we just want to support every legal crypto asset for our customers.

Armstrong expressed his hope that Coinbase will become the Amazon in the crypto world.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/coinbases-crypto-empire/
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