Coinbase, Strategy Miss Earnings Estimates as Stock Prices Fall

Crypto exchange Coinbase and Bitcoin treasury firm Strategy both posted weaker-than-expected earnings for the second quarter. Their respective stocks fell in after-market trading following the earnings report.

Coinbase, Strategy Post Weak Earnings Report

Coinbase’s press release showed that the crypto exchange recorded revenue of $1.220 billion in Q2, below estimates of $1.28 billion. Meanwhile, the earnings per share (EPS) were -$1.36, below estimates of -$0.42.

At the same time, Strategy recorded revenue of $122 million, below estimates of $124.48 million. The Bitcoin treasury firm’s EPS were -$24.45, well below estimates of $3.07. COIN and MSTR stocks are notably down in after-market trading following the earnings report.

The Coinbase stock is currently trading around $155, down over 5%, according to TradingView data. The stock price had plunged as much as 7% before paring these losses to 5%.

Meanwhile, the Strategy stock is trading at around $97, down less than 1% in after-market trading. MSTR climbed as much as 5% during trading hours today as Bitcoin rallied to $65,000 following the release of soft June PCE inflation data.

Strategy’s unrealized loss of $8.32 billion on its Bitcoin holdings contributed to the operating loss of $8.33 billion recorded in the second quarter. The company also realized a loss as it sold some of its BTC holdings in Q2.

‘Everything Exchange’ Strategy Drives Up Key Metrics

Coinbase highlighted how the ‘Everything Exchange’ strategy helped drive all-time high crypto trading volume market share, rising to 10.3% from 9.1% in the first quarter. The top crypto exchange noted that it gained market share in both spot and derivatives quarter-over-quarter (QoQ).

This is notably the exchange’s third consecutive quarter of market share gains. Furthermore, the exchange reached an all-time high in crypto derivatives trading volume market share for the third straight quarter.

Coinbase also revealed that its prediction markets contracts and revenue grew 106% quarter-over-quarter and crossed $100 million in annualized revenue. “A new crypto binaries experience launched late in the quarter drove 3x daily traders and 4x daily revenue vs. May’s daily average,” the exchange said.

The exchange pointed out that its lines of revenue have “significantly diversified,” likely in part to the ‘Everything Exchange’ strategy. Coinbase’s net revenue excluding spot Bitcoin trading was 88% in Q2, up almost 100% from the second quarter at the start of this decade.

For more on derivatives trading, please check out our page on Best Crypto Derivative Futures Trading Platforms