![]() ![]() Fees are lower for this group and still don't make up a significant part of transactional revenue, but there could be further monetization opportunities down the line.Īdditionally, Coinbase recently announced a big partnership with BlackRock (NYSE: BLK), the largest asset manager in the world, to help them offer crypto services to their clients. It now has more than 14,500 customers, and 1,500 of those customers were added in Q2 alone. The crypto exchange at one point could charge as much as 4% on some retail trades, but those fees have fallen to 1.5% now.Ĭoinbase has also worked to further serve institutional traders and has more than doubled the number of institutional clients on its platform since 2020. Dealing with challenges to the businessĬoinbase is heavily reliant on the revenue it makes from commissions on retail trades, but as more exchanges have joined the space and gotten more competitive, the large crypto exchange has seen fee compression. So far, Coinbase is at an adjusted EBITDA loss of $131 million for the first half of the year, meaning the company expects the second half to be a lot more challenging. In its letter to shareholders, the company said it is "working hard" to operate within this bound. If the number ends up toward the lower end of that range, it would represent a steep drop in MTUs for the remainder of the year.įinally, Coinbase has previously pledged to keep annual losses for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to no more than $500 million. Coinbase also expects annual average MTUs to finish the year somewhere between 7 million and 9 million. The company said that total trading volume in July came in at $51 billion, which would result in even weaker trading volume in the third quarter of the year if the trend continues. Coinbase's guidance didn't exactly inspire confidence either. ![]()
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