Coinbase Q2 earnings beat estimates thanks to Blackrock custody deal and institutional focus

Cryptocurrency exchange in New York; Coinbase reported $708 million in revenue in the second quarter of 2023, despite the regulatory issues it has faced in recent months, profits rebounded thanks to an escrow deal with Blackrock and an institutional focus.

The exchange said its second-quarter net income reached $663 million, down 10% from the same period a year earlier but beat early estimates thanks to growing U.S. market dominance as competitors like Binance.US got trapped. due to regulatory issues.

The exchange’s impressive performance was also linked to the strong cryptocurrency price cycle last quarter, with Bitcoin and other altcoins reaching new yearly highs.

The Zacks Consensus Estimate put the exchange at $643.4 million in profit, down 20.4% from last year over the same period. Another report from Messari states that for the first time, the majority of Coinbase’s revenue does not come from transaction fees.

According to Coinbase, the predictions turned out to be correct. Transaction fee revenue in the second quarter of 2023 was $335.4 million compared to $327.1 million in transaction fee revenue for the quarter.

Tristan Green contributed to this story.

This is an evolving story and more information will be added as it becomes available.

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