Bobos & Wojaks

Get Rich Or Die Tryin

Coinbase reveals Elon Musk, Tesla, and SpaceX along with 10% of the top 100 hedge funds are clients.

Coinbase shares jumped as much as 6% in regular trading on Wednesday after the crypto exchange posted second-quarter earnings that above analyst estimates, aided by a surge in trading volumes driven by volatility.

 

The largest cryptocurrency exchange in the United States reported total second-quarter revenue of $2.2 billion, of which $1.9 billion came from transactions and the rest through subscriptions and services.

 

Coinbase also disclosed that it had clients such as Elon Musk, Tesla, and SpaceX, as well as up to 10% of the top 100 largest hedge funds.

 

Musk, CEO of Tesla and SpaceX, stated in March that even dogecoin should be added to Coinbase, in response to a claim that Tesla was purchasing bitcoin on the platform. In June, Coinbase finally listed the meme-inspired asset.

 

Coinbase’s shares climbed to as much as $284.48 at Wednesday’s market open, up from $269.67 after the close on Tuesday.

 

The company said that volatility in crypto-asset prices boosted its quarterly profit, as buyers and sellers conducted more trades to try to profit from the moves. After reaching all-time highs in the spring, the biggest digital currencies bitcoin and ether have each dropped more than 45 percent this year.

 

“Because volatility and crypto-asset prices are highly correlated with trading revenue,” Coinbase said in a statement.

 

Ether accounted for 26 percent of total trading volumes on the market, surpassing bitcoin’s 24 percent stake. Total retail trading volume was $145 billion, a 21% increase from the previous quarter.

 

According to Coinbase, ether’s growth was fueled by growing interest in decentralised finance (DeFi) apps, non-fungible token (NFT) ecosystems, and the ethereum blockchain network’s 2.0 update.

 

“We believe the products that the most crypto-forward people are using today such as DeFi will be used by mainstream customers soon, and by institutions soon after that,” the exchange said.

 

MTUs, or retail users who transact at least once a month, increased 44 percent from the first quarter to 8.8 million in the three months to June. However, the tally fell along with trade volume in July as “volatility reduced dramatically relative to Q2 levels,” according to Coinbase. With this in mind, the exchange anticipates decreased trade volumes in the third quarter.

 

“There are thousands of them today. There are eventually going to be millions of them,” CEO Brian Armstrong said 

Coinbase CEO Brian Armstrong stated during an earnings call that the company aspires to be “the Amazon of assets” by offering every legal crypto asset. In the second quarter, it acquired 22 new assets.