Key facts
- Coinbase reported Q2 revenue of $1.22 billion, missing estimates of $1.28 billion.
- Coinbase's Q2 EPS was -$1.36, below the estimated -$0.42.
- MicroStrategy's Q2 revenue was $122 million, below estimates of $124.48 million.
- MicroStrategy's Q2 EPS was -$24.45, significantly below the estimated $3.07.
- Coinbase's stock fell over 5% in after-market trading following the earnings report.
- MicroStrategy's stock was down less than 1% in after-market trading.
Coinbase and MicroStrategy, two prominent companies in the cryptocurrency space, both reported second-quarter earnings that fell short of analyst expectations, leading to declines in their stock prices in after-market trading. Coinbase, the crypto exchange, posted revenue of $1.22 billion, missing the consensus estimate of $1.28 billion. Its earnings per share (EPS) were -$1.36, significantly below the expected -$0.42.
MicroStrategy, a firm known for its Bitcoin treasury holdings, reported revenue of $122 million, falling short of the $124.48 million anticipated by analysts. The company's EPS also missed expectations, coming in at -$24.45 compared to an estimate of $3.07. MicroStrategy's operating loss for the quarter was $8.33 billion, largely due to an unrealized loss of $8.32 billion on its Bitcoin holdings and the sale of some BTC.
Following these earnings reports, Coinbase's stock price dropped by over 5% in after-market trading, after initially falling as much as 7%. MicroStrategy's stock saw a more modest decline of less than 1% in after-market trading, despite having climbed as much as 5% during regular trading hours, buoyed by positive Bitcoin price action and softer inflation data.
Coinbase highlighted its 'Everything Exchange' strategy, which it stated helped increase its crypto trading volume market share to an all-time high of 10.3% in the second quarter, up from 9.1% in the first quarter. The exchange also noted gains in both spot and derivatives market share for the third consecutive quarter and significant growth in its prediction markets business.