Weekly Recap - Coinbase's Q2 Result, Base Shenanigans, FTX 2.0, and More!

Coinbase Announces Q2 2023 Result

- Kunal Goel (@kunalgoel)

On Thursday, Aug. 4, 2023, Coinbase announced its Q2 2023 result. The day before the result, we published our earnings preview with the help of publicly available data and our assumptions. Coinbase’s net revenue of $663 million beat Wall Street estimates and was in line with our own.

Coinbase saw a 37% quarterly decline in trading volume, gaining market share as industry volumes were down 48%. An increasing share of “simple trades” helped margins, with transaction revenue falling only 13%. Coinbase’s key strength has always been its ability to effectively monetize its large retail base.

As we had estimated, subscription and services revenue overtook transaction revenue for the first time in Coinbase’s history. Blockchain rewards saw meaningful growth of 19%, helped by higher ETH prices and MEV rewards. Interest income fell by 16% as USDC supply fell sharply after the depegging event in March 2023.