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Coinbase, the cryptocurrency exchange, said on Tuesday that its quarterly revenues climbed more than 1,000% and profits climbed nearly 4,900% from the previous year, in its second report on results as a listed company.
Revenue totaled $ 2.2 billion in the three months ending June, up from $ 186 million a year ago. Profit was $ 1.6 billion, up from $ 32 million a year earlier.
Coinbase went public in April, around the time the price of a single Bitcoin broke a record high of $ 60,000. Digital currency has since collapsed and is now hovering around $ 45,337. In its earnings report, Coinbase cautioned against volatility and said it expected transactions, its main source of income, to decline in the coming months.
Coinbase’s listing served as a validation moment for cryptocurrencies, which have often been dismissed as a tool for criminals and speculators. But the company, which trades on the Nasdaq and is valued at $ 70 billion, has shown that a large, profitable and legal business can be created to serve the growing groups of people who want to use digital currencies.
Along with Coinbase’s public listing, the rise in the price of Bitcoin and other cryptocurrencies has triggered a wave of general interest in digital assets. Tesla and Square bought a stock of tokens. Wall Street banks have expanded their crypto offerings. El Salvador has even said it will accept Bitcoin as legal tender.
It also prompted more regulatory control. China has cracked down on cryptocurrency mining operations. US regulators are exploring ways to tax and control assets. This week, the Senate approved an infrastructure spending bill that included new taxes for digital assets, which industry executives opposed for being too vague and broad.
In a letter to shareholders, Coinbase cited data that 13% of Americans have traded cryptocurrencies in the past year, compared to 24% who have traded shares. “These adoption trends coupled with the government’s recent focus on crypto as a revenue stream suggest that we have reached an inflection point,” the company said. “The crypto has arrived.”
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