In a twist worth noting for crypto enthusiasts everywhere, the avalanche of post-market earnings has pushed Coinbase shares higher. After the dust settled yesterday, the digital exchange platform reported revenue figures of $708 million, trumping the era’s $628 million guesstimate from speculating analysts. Equally surprising, adjusted earnings stood at a loss of $0.42 per share, a minor wound compared to the expected hemorrhaging $0.76 loss per share.
This only ignites the intrigue when one recalls the grayscale image painted by the reported transaction revenue – a taper from $375 million to $327 million from the first quarter to this one. Total trading volume witnessed a similar trend, dipping from a handsome $145 billion to a more modest $92 billion. Interest income also fell to $201 million from Q1’s $241 million, adding more layers to the financial pie.
Of the total interest income for Q2, over 70%, or $151 million, originates from Coinbase’s holdings of USDC. One sighs, imagining the potential if the bearish shadow hadn’t thwarted the crypto world.
Undoubtedly, Coinbase’s shares displaying a healthy shade of green in after-hour trading at $95.60 will pique analysts’ curiosity. It’s worth stressing that this boon goes beyond the after-hours playground. Year-to-date, Coinbase’s shares have skyrocketed about 160%, while the bellwether of the crypto world, bitcoin, prefers a less rollercoaster-like landscape, rising steadily a little over 75% in the same time frame.
A less naive observer might question the paradox, but Coinbase CEO Brian Armstrong has championed the venture’s resilience. He accuses the recent stripe of success as product of operational efficiency and strategic cost cutting. Though the crypto economy is as challenging as a wild mustang, Coinbase remains in the saddle. In his words, they are “well-positioned to build the future of the crypto economy,” bolstered by their drive to facilitate regulatory clarity.
Will Coinbase prove to be the phoenix rising from the ashes? Or is this surge the calm before another storm? As we await dawn after an interesting trading day, the clock counts down to a 5.30 p.m. ET conference call with the men and women peering into the financial crystal ball – analysts. What fates await us, remain to be seen.
Source: Coindesk
