Trading on the crypto market increased enormously. Coinbase earns from transaction fees and thus benefits from this development.
Coinbase, the largest US trading platform for cyber currencies such as Bitcoin, made splendid earnings in the second quarter despite the sudden end of the record hunt on the crypto market.
In the three months to the end of June, profits shot up by around 4900 percent year-on-year to 1.6 billion dollars (1.4 billion euros). This was announced by Coinbase after the US market closed. Revenues grew by over 1000 percent to $ 2.0 billion.
Coinbase earns from transaction fees and trading on the crypto market increased enormously compared to the same period last year. The group benefited from the market turmoil despite massive slumps in the price of Bitcoin and other digital currencies such as Ethereum, which had reached highs in the previous quarter. However, the business is heavily dependent on the ongoing crypto hype. Recently, the prices of Bitcoin and Co. have already gone up significantly, but the company still expects lower growth.
The strong figures for the past quarter therefore initially did not trigger any major price jumps on Wall Street, the shares of Coinbase only rose slightly after the hours. Since the brilliant IPO of the crypto exchange in April, the company, which was founded in 2012, has already had a difficult time with investors. The share price has fallen by almost 30 percent since it premiered on the New York tech stock exchange Nasdaq, and on Tuesday it closed at just under $ 270 .
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
