Coinbase Revenue Falls 19% as It Renews Circle Partnership
Coinbase shares fell 5.6% in premarket trading. The cryptocurrency trading platform said second-quarter revenue fell 19% year over year to $1.2 billion, marking the third consecutive quarter of decline. Chief Executive Brian Armstrong said the company will renew its revenue-sharing agreement with Circle next month on its existing terms. Coinbase is the largest distribution channel for Circle’s US dollar-backed stablecoin, USDC. Coinbase recently also joined the Open Standard alliance, supported by Stripe and Visa, which is issuing a new stablecoin called OpenUSD. Under the renewed agreement with Circle, Coinbase will continue to receive 50% of all revenue generated by USDC outside the Coinbase platform, as well as all revenue from USDC-related business on its platform. Revenue from Coinbase’s stablecoin business was $292 million for the quarter, down 5% from a year earlier. Revenue from its prediction-markets business jumped 106% from the previous quarter, with annualized revenue exceeding $100 million. The company reported a quarterly net loss of $359 million, compared with net income of $1.4 billion in the year-earlier period. Coinbase remains committed to achieving positive adjusted EBITDA regardless of market conditions.
The cryptocurrency trading platform said second-quarter revenue fell 19% year over year to $1.2 billion, marking the third consecutive quarter of decline. Chief Executive Brian Armstrong said the company will renew its revenue-sharing agreement with Circle next month on its existing terms.
Coinbase is the largest distribution channel for Circle’s US dollar-backed stablecoin, USDC. Coinbase recently also joined the Open Standard alliance, supported by Stripe and Visa, which is issuing a new stablecoin called OpenUSD.
Under the renewed agreement with Circle, Coinbase will continue to receive 50% of all revenue generated by USDC outside the Coinbase platform, as well as all revenue from USDC-related business on its platform.
Revenue from Coinbase’s stablecoin business was $292 million for the quarter, down 5% from a year earlier. Revenue from its prediction-markets business jumped 106% from the previous quarter, with annualized revenue exceeding $100 million.
The company reported a quarterly net loss of $359 million, compared with net income of $1.4 billion in the year-earlier period. Coinbase remains committed to achieving positive adjusted EBITDA regardless of market conditions.