By Yasin Ebrahim
Investing.com – Coinbase reported second-quarter results that exceeded Wall Street expectations on both the top and bottom lines on Tuesday, as abrupt changes in cryptocurrencies boosted trading volume and increased commissions for to the exchange of cryptocurrencies.
Coinbase Global Inc. (NASDAQ 🙂 shares rose 1% in after-hours trading.
Coinbase reported $ 6.42 billion EPS for revenue of $ 2.23 billion, exceeding expectations of $ 2.31 for revenue of $ 1.788 billion.
Users of monthly retail transactions or MTUs increased 44% to 8.8 million.
“The growth of 2Q MTU was driven by the environment of the cryptography market, product launches, our marketing efforts and the growing number of cryptographic assets we support,” the company said.
Total transaction revenue grew to $ 1.93 billion, from $ 171.9 million last year, to a total of $ 1.83 billion, and institutional revenue by just $ 102.4 million.
But not only are retail investors jumping into cryptography, institutional investors are also showing great interest.
“Overall, we see retail users deepening their commitment to our platform …” the company said. “On the institutional side, we now have over 9,000 financial institutions using Coinbase. Several important issues have been developed with our institutional business.”
Coinbase made its public market debut in April through a direct quote at $ 381 per share. However, the company’s current business model has been protected by the concern that increased competition will end up causing the company’s high business commissions, which make up most of the revenue, to be lower.
But Coinbase CEO Brian Armstrong has suggested the company invest in other business flows to diversify its revenue.
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