Coinbase Q2 Earnings and SEC Filings – What to Expect This Friday?
In Brief
Coinbase has released a Shareholder Letter for the second quarter of 2023.
In Q2, the company earned $707.9 million in total revenues. The volume of cryptocurrency trading fell 37% to $92 billion. Trading revenue decreased from $375 million to $327 million. These statistics still beat market estimates and indicate the possible end of “crypto winter.”
On August 4, Coinbase plans to file an order in court to dismiss the Securities and Exchange Commission’s lawsuit.
The exchange will also launch its L2 blockchain, BASE, on August 9.
The second-largest cryptocurrency exchange by trading volume, Coinbase, has released a Shareholder Letter for the second quarter of 2023.
Coinbase shared that in the second quarter, it earned $707.9 million in total revenues, while in the first quarter of 2023, the company earned $772.5 million. Coinbase also had a net loss of $97 million.
In the first quarter of the year, the volume of cryptocurrency trading was $145 billion. In Q2, it fell 37% to $92 billion. In addition, trading revenue decreased from $375 million to $327 million. However, these statistics still beat market estimates and indicate the possible end of “crypto winter.” Analysts expected a less positive report for this quarter, considering that on June 6, the U.S. Securities and Exchange Commission filed a lawsuit against Coinbase as it has been allegedly operating as an unregistered exchange.
Notably, on Friday, August 4, Coinbase plans to file an order in court in order to dismiss the Securities and Exchange Commission’s lawsuit. The organization is reportedly full confident about its arguments made to the court.
Coinbase reported its earnings “after the bell” on Thursday, August 3. So, no actual trades were made after the report was released. It is still not clear how the price of COIN will react on August 4, when the market opens. After the announcement, shares of Coinbase rose 7% to approximately $96.70. After hours, the stock traded at $89.85. The current price of a share is $90.75.
Coinbase also announced the official launch of its Layer 2 blockchain, called BASE, scheduled for August 9. According to the report, the company will allow anyone to build on its simplified on-chain infrastructure. Overall, Coinbase aims to make on-chain applications as builder-friendly as their web2 predecessor.
“Base is designed for speed, security, and low costs. Since our test net launch six months ago, we’ve received an overwhelming response from the builder community, with projects spanning numerous fields like gaming, NFTs, DeFi, and beyond, even extending to novel areas such as on-chain restaurants and games,” states the company’s report.
The organization also launches an initiative called “Onchain Summer,” which will include events aimed at developers and creators. Individuals will have the opportunity to make art or build applications on Base, along with the NFT platform OpenSea, Coca-Cola, and gaming powerhouse Atari.
“Longer-term, we are focused on further driving the usage of crypto by building infrastructure and products that will facilitate crypto’s use in everyday transactions. Just like the development of the internet required the creation of foundational tools and protocols, the growth of the crypto economy requires a robust, yet accessible, infrastructure,” wrote Coinbase in its Shareholders Letter.
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About The Author
Valeria is a reporter for Metaverse Post. She focuses on fundraises, AI, metaverse, digital fashion, NFTs, and everything web3-related. Valeria has a Master’s degree in Public Communications and is getting her second Major in International Business Management. She dedicates her free time to photography and fashion styling. At the age of 13, Valeria created her first fashion-focused blog, which developed her passion for journalism and style. She is based in northern Italy and often works remotely from different European cities. You can contact her at valerygoncharenko@mpost.io
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Valeria is a reporter for Metaverse Post. She focuses on fundraises, AI, metaverse, digital fashion, NFTs, and everything web3-related. Valeria has a Master’s degree in Public Communications and is getting her second Major in International Business Management. She dedicates her free time to photography and fashion styling. At the age of 13, Valeria created her first fashion-focused blog, which developed her passion for journalism and style. She is based in northern Italy and often works remotely from different European cities. You can contact her at valerygoncharenko@mpost.io
