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Coinbase reports 88% of Q2 revenue came from non-spot sources

Coinbase posted a $359.5 million net loss in Q2 under US accounting rules, as total revenue fell 14% to $1.22 billion alongside weaker spot volumes.

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Coinbase said 88% of its second-quarter net revenue came from sources other than Bitcoin spot trading, a shift from the pattern tied to retail trading activity at its 2021 public listing. In the same period, the company reported a $359.5 million net loss under US accounting rules, marking its third consecutive losing quarter.

The earnings release also highlighted the broader market backdrop that weighed on crypto activity. Industry spot volume fell 25% quarter over quarter, crypto prices dropped 11%, volatility compressed to multi-year lows, and Bitcoin and Ethereum declined over the quarter by roughly 14% and 25%, respectively.

Despite the downturn, Coinbase said it held up better than the market around it. Total revenue declined 14% to $1.22 billion, while Coinbase increased its share of global crypto trading volume to 10.3% from 9.1% in the first quarter.

Coinbase indicated that subscription and services revenue grew from $6 million in the second quarter of 2020 to $555 million in the same quarter this year, and that Bitcoin spot trading now contributes about one-eighth of its net revenue, versus 55% in Q2 2020. Still, it noted that revenue outside Bitcoin spot trading can include fees linked to other crypto assets and activities, including derivatives and prediction market contracts, which can move with conditions that affect Bitcoin trading.

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