Coinbase reported total revenue of $1.4 billion for the second quarter of this year.
Analysts from Oppenheimer, Owen Lau and Guru Sidaarth, had anticipated revenue of $1.36 billion, a decrease from the $1.6 billion reported in the first quarter.
Transaction revenue dropped to $781 million, marking a 27% decrease from the previous quarter, while subscriptions and services revenue totaled $600 million. Coinbase also noted a significant 300% increase in transactions on its Base platform.
In a shareholder letter, Coinbase highlighted significant progress in regulatory clarity, which it views as crucial for both the company and the broader cryptocurrency sector. The company noted that the Stand With Crypto initiative has garnered over 1.3 million supporters, influencing both political parties and generating momentum for advancing crypto legislation.
Looking ahead, Coinbase forecasts third-quarter subscription and services revenue to be between $530 million and $600 million. It also anticipates transaction expenses to be in the mid-teens percentage-wise of net revenue, with technology and development, along with general and administrative costs, expected to rise to $700-$750 million due to stock-based compensation.
Oppenheimer analysts believe that regulatory advancements and potential inclusion in the S&P 500 might be underestimated in Coinbase’s long-term outlook. They view recent selling pressure from entities like Mt. Gox as a minor factor in daily volume and see it as a potential buying opportunity for Coinbase. Oppenheimer maintains an outperform rating on Coinbase with a price target of $280.
Vice President Kamala Harris, the Democratic candidate for the upcoming presidential election in November, recently spoke at a Wall Street fundraiser where she addressed the cryptocurrency industry for the first time.
Donors from Wall Street, Silicon Valley, and Hollywood played a key role in helping Vice President Kamala Harris’ fundraising efforts in August, giving Democrats a financial advantage over Donald Trump on the cusp of the run-off election.
Pro-XRP attorney John Deaton, who has secured the Republican nomination for a Massachusetts Senate seat, will face off against Democratic Senator Elizabeth Warren in a highly anticipated debate on October 15, 2024.
Ripple Chairman Chris Larsen has recently moved 20 million XRP as part of a larger shuffle involving 50 million tokens.