Coinbase's Q2 Revenue Doubles, Stock Price Drops About 7% After Hours

After Coinbase released its Q2 earnings report, its stock price fell about 7% in after-hours trading. The company predicts rapid growth in market operations, with its global cryptocurrency trading market share reaching a new high. The earnings report shows that the number of predicted market contracts and related revenue increased by 106% quarter-over-quarter, with annualized revenue exceeding $100 million. The binary prediction product launched at the end of the quarter boosted the daily trading user count to about three times that of May, with daily revenue increasing to approximately four times. During the same period, Coinbase's global cryptocurrency trading market share rose to 10.3%, up from 9.1% in the previous quarter, marking the third consecutive quarter of market share growth. The company stated that its "Everything Exchange" strategy is driving its business expansion from traditional cryptocurrency trading to areas such as prediction markets, tokenized stocks, and derivatives. Currently, about 88% of net revenue comes from businesses outside of Bitcoin spot trading. Additionally, the average USDC holdings on the platform reached a record $20 billion, accounting for over 30% of the total circulating USDC; subscription and service revenue reached $555 million, making up nearly half of net revenue. Coinbase has achieved adjusted EBITDA profitability for the 14th consecutive quarter. CEO Brian Armstrong stated that Coinbase is accelerating its embrace of cryptocurrency technology in the financial services sector.