Key Takeaways
Coinbase stock fell 7% in after-hours trading as Q2 adjusted net income came in at just $33M, down from $524M in Q1.
Coinbase bought $222M worth of Bitcoin during the quarter, bringing its crypto investment portfolio to $1.8B.
Coinbase reported weaker-than-expected second-quarter results on Thursday, sending its stock down more than 7% in post-market trading, according to Yahoo Finance data.
While the company posted $1.4 billion in net income under GAAP, bolstered by gains on crypto and strategic investments, its adjusted net income fell sharply to $33 million, down from $524 million in Q1.
The results came as trading volumes slumped across the board. Total revenue dropped to $1.5 billion, down 26% from the previous quarter. Transaction revenue fell 39% to $764 million, with consumer volumes down 45% and institutional volumes off 38%.
Despite the earnings miss, Coinbase continued to expand its Bitcoin holdings, adding $222 million worth of BTC during Q2 through weekly purchases. The crypto investment portfolio now sits at $1.8 billion in fair market value.
For Q3, Coinbase projects July transaction revenue of $360 million and expects subscription and services revenue to land between $665 million and $745 million, supported by higher crypto prices and record USDC market cap.