Coinbase Global Inc
For the period ended Jun 30, 2024. Filed Aug 1, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 1, 2024
COIN$134.76-1.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-02.
0001679788-24-000089
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-01.
0001679788-24-000149
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 203 previous paragraphs and 217 current paragraphs.
93 unchanged; 75 reworded; 43 added; 29 removed; 6 previous and 6 current paragraphs rearranged.
Tables are not compared: 22 previous and 21 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (43)
Current report
Losses (gains) on crypto assets held for operations, net, reflect changes in the fair value of crypto assets received as a form of payment and nearly immediately converted to cash or used timely to fulfill corporate expenses. In addition to crypto asset price changes, these gains and losses are influenced by the volume and mix of crypto assets received and used, and the timing of the turnover of these crypto assets.
Current report
Losses (gains) on crypto assets held for investment, net generally comprise fair value remeasurement gains and losses from our crypto assets held for investment.
Current report
Other expense (income), net
Current report
(Benefit from) provision for income taxes
Current report
•increases in stablecoin revenue of $27.1 million and $62.3 million due to higher average interest rates, which rose 57 and 74 basis points, and $45.8 million and $76.1 million primarily due to higher on-platform USDC balances. For the six months ended June 30, 2024 as compared to 2023, these increases were partially offset by a decrease of $45.9 million attributable to a decline in overall USDC market capitalization;
Current report
•an increase of $106.0 million and $173.6 million in blockchain rewards due to higher average prices for Ethereum and Solana, and an increase due to higher native units staked, partially offset by lower reward rates;
Current report
•an increase in interest and finance fee income primarily reflecting growth of $10.6 million and $21.2 million in finance fees driven by higher average daily Prime Financing loan receivable outstanding balances. In addition, we saw growth of $5.1 million and $16.1 million related to customer custodial cash, primarily due to higher average customer balances and higher average earned interest rates;
Current report
•an increase in custodial fee revenue primarily due to the growth in average crypto assets under custody of $82.2 billion and $78.8 billion as a result of higher crypto asset prices, primarily for Bitcoin and Ethereum; and
Current report
•an increase in payment processing and account verification fees reflecting Trading Volume growth of 146% and 127%, and more directly for account verification fees, an increase in the number of consumers trading on our platform of 13% for both comparative periods. These increases were offset in part by savings from reduced fees at higher volumes and our cost optimization efforts;
Current report
•an increase in miner fees for the six months ended June 30, 2024, primarily due to a $20.7 million increase resulting from higher blockchain transmission volumes, as well as due to higher average prices for Ethereum and Bitcoin; and
Current report
•an increase in other largely driven by higher transaction rebates earned by institutional customers as we work to create liquidity in our international exchange in the early stages of this offering.
Current report
There were no material changes to note within transaction reversal losses.
Current report
Technology and development
Current report
Technology and development expenses increased for the three and six months ended June 30, 2024 as compared to 2023, due to:
Current report
•an increase in website hosting and infrastructure expenses driven by increased activity on our platform.
Current report
There were no material changes to note within amortization expense or other.
Current report
Sales and marketing
Current report
Sales and marketing expenses increased for the three and six months ended June 30, 2024 as compared to 2023, due to:
Current report
•an increase in marketing program expenses due to higher digital advertising spend; and
Current report
•an increase in USDC rewards payouts primarily driven by higher reward rates offered to customers in an effort to enhance customer retention and platform engagement.
Current report
General and administrative
Current report
•an increase in other, primarily reflecting:
Current report
▪an increase of $25.9 million in policy spend as we increased our crypto advocacy efforts;
Current report
▪an increase of $13.7 million and $17.5 million in taxes, licenses, and fees largely due to higher indirect taxes directly associated with the growth in revenue and the application of certain indirect tax rules;
Current report
▪lower lease costs, as we recognized a one-time lease termination fee of $25.0 million during the six months ended June 30, 2023 related to the closure of our San Francisco office space.
Current report
Losses on crypto assets held for operations, net during the three months ended June 30, 2024 resulted from a net use of crypto assets for operations during a period of declining crypto asset prices. Gains on crypto assets held for operations, net during the six months ended June 30, 2024 resulted from net receipts of crypto assets for operations during a period of rising crypto asset prices.
Current report
Restructuring
Current report
•an increase in costs due to platform-related incidents; and
Current report
There were no material changes to note within other.
Current report
Losses (gains) on crypto assets held for investment, net during the three and six months ended June 30, 2024 were primarily due to the remeasurement of the fair value of crypto assets held, mainly Bitcoin and Ethereum, during periods of decreasing and increasing crypto asset prices, respectively.
Current report
Other expense (income), net
Current report
•an increase in impairment expense recognized on certain strategic equity investments;
Current report
•losses on the fair value remeasurement of certain other crypto asset-denominated financial instruments;
Current report
There were no material changes to note within other.
Current report
(Benefit from) provision for income taxes
Current report
•(benefit from) provision for income taxes;
Current report
Primary resources and commitments
Current report
(2)Restricted cash and cash equivalents consists of money market funds and amounts held at banks and venues.
Current report
Other resources and commitments
Current report
Customer assets and liabilities
Showing the first 40 of 43 passages. Open the source sections for the rest.
Removed paragraphs (29)
Previous report
Our Trading Volume in future periods will depend on the relative availability and adoption of Bitcoin, Ethereum, and other crypto assets.
Previous report
Starting in the first quarter of 2024, gains on crypto assets held for operations, net, includes realized and unrealized gains and losses on our crypto assets held for operations.
Previous report
Starting in the first quarter of 2024, gains on crypto assets held for investment, net includes realized and unrealized gains and losses on our crypto assets held for investment.
Previous report
Other (income) expense, net
Previous report
Provision for (benefit from) income taxes
Previous report
•Stablecoin revenue remained flat year over year due to offsetting trends. Revenue was negatively impacted due to lower off-platform USDC market capitalization, however this reduction was offset by higher interest rates, which rose 84 basis points, and a new arrangement with the issuer of USDC;
Previous report
•an increase in blockchain rewards, driven by higher average crypto asset prices, resulting in an increase of $51.2 million, with the remainder due to an increase in native units staked;
Previous report
•an increase in interest and finance fee income due to $11.6 million in interest income generated on customer custodial cash primarily as a result of higher average earned interest rates, which were up 84 basis points, and higher finance fees driven by increased demand for our Prime Financing products;
Previous report
•an increase in custodial fee revenue of $17.1 million due to an increase of $75.5 billion in average crypto assets under custody as a result of higher asset prices and $7.5 million of net native unit inflows, partially offset by a $9.3 million decrease in fee rates; and
Previous report
•an increase in payment processing and account verification fees reflecting higher Trading Volume of 115%, and growth in new customer sign up activity;
Previous report
•an increase in transaction reversal losses driven by the increased transaction revenue. Despite the increase, the transaction reversal loss as a percentage of transaction revenue decreased driven by our efforts to optimize our fraud monitoring processes;
Previous report
•an increase in miner fees primarily driven by $20.1 million attributed to higher average crypto asset prices and increased blockchain transmission volumes from both customer withdrawals and corporate wallet movements, as well as higher blockchain network fees, such as Ethereum gas prices which rose 39%; and
Previous report
•an increase in other largely due to higher transaction rebates and incentives earned by institutional customers.
Previous report
Technology and development expense
Previous report
Sales and marketing expense
Previous report
Sales and marketing expenses increased for the three months ended March 31, 2024, as compared to 2023, primarily due to higher USDC rewards payouts driven by growth in on-platform USDC balances.
Previous report
General and administrative expense
Previous report
Gains on crypto assets held for operations, net was $86.4 million for the three months ended March 31, 2024. Of the total, $57.0 million represented realized gains recognized on crypto assets sold during the period, with the remaining attributed to unrealized gains on our crypto assets held for operations.
Previous report
Restructuring expense
Previous report
There were no material changes to note within platform-related incidents and losses or other.
Previous report
Gains on crypto assets held for investment, net was $650.4 million for the three months ended March 31, 2024. Of the total, $633.4 million represented gains from the fair value remeasurement of our crypto assets held for investment.
Previous report
Other (income) expense, net
Previous report
There were no material changes to note within strategic investment losses, net or other.
Previous report
Provision for (benefit from) income taxes
Previous report
•provision for (benefit from) income taxes;
Previous report
In January 2023, S&P Global Ratings announced a downgrade of our issuer credit rating and senior unsecured debt from BB to BB-, and Moody’s Investors Service (“Moody’s”) announced a downgrade of our Corporate Family Rating (“CFR”) to B2 from Ba3 and downgraded our guaranteed senior unsecured notes to B1 from Ba2. As of March 31, 2024, our credit ratings with S&P Global Ratings and Moody’s remain unchanged from these downgraded levels. A downgrade of our credit rating may adversely affect our ability to raise additional financing, and any future debt offerings or credit arrangements we propose to enter into may be on less favorable terms or terms that may not be acceptable to us.
Previous report
(2)Restricted cash consists primarily of amounts held in restricted bank accounts at certain third-party banks as security deposits.
Previous report
Customer assets
Previous report
•a $43.3 million decrease in cash used as a result of the prior year period cash payment for the settlement of crypto asset futures, which did not recur in the current period as we have not engaged in any corporate investment hedging strategies.
Reworded paragraphs (75)
Previous wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our Condensed Consolidated Financial Statements and the accompanying notes thereto included elsewhere in this Quarterly Report on Form 10-Q. The following discussion and analysis contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to these differences include, but are not limited to, those identified below and those discussed in the section titled Risk Factors in Part II, Item 1A of this Quarterly Report on Form 10-Q. Unless otherwise expressly stated or the context otherwise requires, references to “we,” “our,” “us,” “the Company,” and “Coinbase” refer to Coinbase Global, Inc. and its consolidated subsidiaries.
Current wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our Condensed Consolidated Financial Statements and the accompanying notes thereto included elsewhere in this Quarterly Report on Form 10-Q. The following discussion and analysis contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to these differences include, but are not limited to, those identified below and those discussed in the section titled Risk Factors in Part II, Item 1A of this Quarterly Report on Form 10-Q. Unless otherwise expressly stated or the context otherwise requires, references to “we,” “our,” “us,” “the Company,” and “Coinbase” refer to Coinbase Global, Inc. and its consolidated subsidiaries. For all narrative provided in this Item 2, two numbers presented consecutively represent figures for the three and six months ended June 30, 2024 as compared to the corresponding periods in 2023, respectively, unless otherwise noted.
Previous wording
Our financial performance during the first quarter of 2024 reflects our focused execution on product expansion, ongoing operational discipline, and strong crypto market conditions. For the three months ended March 31, 2024 we generated $1.6 billion of Net revenue and $1.2 billion in net income.
Current wording
Our financial performance during the second quarter of 2024 reflects our focused execution on product expansion, ongoing operational discipline, and regulatory clarity efforts. For the three and six months ended June 30, 2024 we generated $1.4 billion and $3.0 billion of Net revenue and $36.2 million and $1.2 billion in Net income.
Previous wording
For the remainder of 2024, our primary focus will be on three main priorities. First we plan to drive revenue growth by expanding our transaction and stablecoin revenue streams. This will involve international expansion and deeper integration of USDC into the cryptoeconomy. Second, we plan to enhance the utility of crypto by promoting the use of stablecoins and supporting developers on our Base platform. Lastly, we plan to continue to work towards achieving regulatory clarity for the industry. Overall, the first quarter of 2024 was highly productive, and we remain dedicated to our mission of increasing economic freedom worldwide.
Current wording
For the remainder of 2024, our primary focus will be on three main priorities. First we plan to drive revenue growth by expanding our transaction and stablecoin revenue streams. This will involve international expansion and deeper integration of USDC into the cryptoeconomy. Second, we plan to enhance the utility of crypto by promoting the use of stablecoins and supporting developers on our Base platform. Lastly, we plan to continue to work towards achieving regulatory clarity for the industry. Overall, the second quarter of 2024 was a quarter of strong progress for us and the crypto industry, and we remain dedicated to our mission of increasing economic freedom worldwide.
Previous wording
We define a Monthly Transacting User (“MTU”) as a consumer who actively or passively transacts in one or more products on our platform at least once during the rolling 28-day period ending on the date of measurement. Quarterly MTUs are the average of each month’s MTUs in each respective quarter. Revenue-generating transactions include active transactions such as buying or selling crypto assets or passive transactions such as earning a staking reward. MTUs also engage in transactions that are non-revenue generating such as send and receive. MTUs may overstate the number of unique consumers due to differences in product architecture or user behavior.
Current wording
Revenue-generating transactions include active transactions such as buying or selling crypto assets or passive transactions such as earning a staking reward. MTUs also engage in transactions that are non-revenue generating such as send and receive. MTUs may overstate the number of unique consumers due to differences in product architecture or user behavior.
Previous wording
MTUs declined for the three months ended March 31, 2024 as compared to the three months ended March 31, 2023 due in part to a decrease in staking users as a result of updates we made to our staking service offset by an increase in trading users which led to higher Trading Volume and net revenue in the current period.
Current wording
MTUs increased for the three and six months ended June 30, 2024 as compared to 2023, primarily due to a 1.0 million and 0.9 million increase in trading users, influenced by overall crypto market sentiment and activity and higher average crypto asset prices, partially offset by a decrease in staking users as a result of updates we made to our staking service.
Previous wording
We define “Trading Volume” as the total U.S. dollar equivalent value of spot matched trades transacted between a buyer and seller through our platform during the period of measurement. Trading Volume represents the product of the quantity of assets transacted and the trade price at the time the transaction was executed. As trading activity directly impacts transaction revenue, we believe this measure is a reflection of liquidity on our order books, trading health, and the underlying growth of the cryptoeconomy.
Current wording
We define Trading Volume as the total United States (“U.S.”) dollar equivalent value of spot matched trades transacted between a buyer and seller through our platform during the period of measurement. Trading Volume represents the product of the quantity of assets transacted and the trade price at the time the transaction was executed. As trading activity directly impacts transaction revenue, we believe this measure is a reflection of liquidity on our order books, trading health, and the underlying growth of the cryptoeconomy.
Previous wording
Generally, Trading Volume on our platform is primarily influenced by the price of crypto assets, crypto market capitalization, crypto asset volatility, macroeconomic conditions, and our share of total crypto market spot trading volume. In periods of high crypto asset prices and crypto asset volatility, we have experienced correspondingly high levels of Trading Volume on our platform.
Current wording
Generally, Trading Volume on our platform is primarily influenced by overall market dynamics, namely the price of crypto assets, crypto asset volatility, macroeconomic conditions, and by our share of total crypto market spot trading volume. In periods of high crypto asset prices and crypto asset volatility, we have experienced correspondingly high levels of Trading Volume on our platform.
Previous wording
For the three months ended March 31, 2024 as compared to 2023, Trading Volume increased 115% primarily due to:
Current wording
For the three and six months ended June 30, 2024 as compared to 2023, Trading Volume increased 146% and 127% reflecting an increase in both the total market and our market share in the U.S., where our business is concentrated:
Previous wording
•an increase in Crypto Asset Volatility 1 of 12% and an increase in total crypto market capitalization of 94%. These two macro inputs have historically been heavily correlated with Trading Volume and are typically influenced by overall crypto market sentiment, activity in the crypto market and higher average crypto asset prices; and
Current wording
•Total market — an increase in Crypto Asset Volatility 1 of 40% and 23% and an increase in total crypto market capitalization of 109% and 96%. These two macro inputs have historically been heavily correlated with Trading Volume and are typically influenced by overall crypto market sentiment, activity in the crypto market, and higher average crypto asset prices; and
Previous wording
•an increase in our market share, as Trading Volume growth outpaced total crypto market spot trading volume growth. This includes outperforming spot market trading volume in the United States, which grew 78%, where our business is concentrated, as we were able to capture a larger portion of the trading activity due to our competitive position and product strategy.
Current wording
•Market share — our Trading Volume growth outpaced the 83% and 80% growth in overall U.S. spot market trading volume, as we were able to capture a larger portion of the trading activity due to our competitive position and product strategy.
Previous wording
We generate revenue from transactions, subscription and services, and other activities. The vast majority of our total revenue is generated in the United States, which is based on the domicile of the customers.
Current wording
We generate revenue from transactions, subscription and services, and other activities. The vast majority of our total revenue is generated in the U.S., which is based on the domicile of the customers.
Previous wording
Transaction revenue is generated primarily from transaction fees on consumer and institutional trades that occur on our platform. We also earn other transaction revenue, which primarily consists of Base and payment-related revenue.
Current wording
Transaction revenue is generated primarily from transaction fees on consumer and institutional trades that occur on our platform. We also earn other transaction revenue, which primarily consists of sequencer fees from Base users and fees charged for payment-related transactions. Transaction revenue is recognized at the time the transaction is processed.
Previous wording
We provide a trade matching service for users to buy, sell, or convert crypto assets through our platform. This trading activity is the primary source of our transaction revenue and core to the service we offer. Transaction revenue is generated primarily from transaction fees applied to spot trades that are executed by both consumer and institutional customers on our platform. The transaction fee earned is based on the price and quantity of the crypto asset that is bought, sold, or converted. Transaction revenue is recognized at the time the transaction is processed. Transaction revenue is directly correlated with Trading Volume, which is driven by the number of spot trade transactions processed on our platform. Institutional customers incur lower fees per transaction than consumer customers and, as a result, the impact of changes in consumer Trading Volume on transaction revenue is more pronounced than changes in institutional Trading Volume. In addition, changes in our pricing and mix between types of transactions will affect transaction revenue. See the section titled “—Key Business Metrics—Trading Volume” above for more information on our Trading Volume metric.
Current wording
We provide a trade matching service for users to buy, sell, or convert crypto assets through our platform. This trading activity is the primary source of our transaction revenue and core to the service we offer. Transaction revenue is generated primarily from transaction fees applied to spot trades that are executed by both consumer and institutional customers on our platform. The transaction fee earned is based on the price and quantity of the crypto asset that is bought, sold, or converted. Transaction revenue is directly correlated with Trading Volume, which is driven by both the number of spot trade transactions processed on our platform and the crypto asset price at the time of execution. Institutional customers incur lower fees per transaction than consumer customers and, as a result, the impact of changes in consumer Trading Volume on transaction revenue is more pronounced than changes in institutional Trading Volume. In addition, changes in our pricing and mix between types of transactions will affect transaction revenue. See the section titled “—Key Business Metrics—Trading Volume” above for more information on our Trading Volume metric.
Previous wording
Operating expenses consist of transaction expense, technology and development, sales and marketing, general and administrative, gains on crypto assets held for operations, net (following our adoption of ASU No. 2023-08, Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”)), crypto asset impairment, net (prior to our adoption of ASU 2023-08), restructuring, and other operating expense, net. Personnel-related expense in all of these categories includes employee cash, stock-based compensation expense, and other employee benefits.
Current wording
Operating expenses consist of Transaction expense, Technology and development, Sales and marketing, General and administrative, Losses (gains) on crypto assets held for operations, net, Crypto asset impairment, net, Restructuring, and Other operating expense (income), net. Personnel-related expense in all of these categories includes employee cash, stock-based compensation expense, and other employee benefits.
Previous wording
Technology and development expenses comprise mainly personnel-related expenses incurred in operating, maintaining, and enhancing our platform and in developing new products and services. These costs also include website hosting and infrastructure expenses, and the amortization of internally developed and acquired developed technology. Certain costs of developing new products and services are capitalized to property and equipment, net included within Other non-current assets in our Condensed Consolidated Balance Sheets.
Current wording
Technology and development expenses comprise mainly personnel-related expenses incurred in operating, maintaining, and enhancing our platform and in developing new products and services. These costs also include website hosting and infrastructure expenses, and the amortization of internally developed and acquired developed technology. Certain costs of developing new products and services are capitalized to software and equipment, net included within Other non-current assets inour Condensed Consolidated Balance Sheets.
Previous wording
General and administrative expenses include personnel-related expenses incurred to support our business, including executive, customer support, compliance, finance, human resources, legal, and other support operations. These expenses also include costs of professional services and software subscriptions for support services.
Current wording
General and administrative expenses include personnel-related expenses incurred to support our business, including executive, customer support, compliance, finance, human resources, legal, and other support operations. These expenses also include costs of professional services, policy spend, and software subscriptions for support services.
Previous wording
Crypto asset impairment, net represents gross impairments recorded on crypto assets held, net of subsequent realized gains on the sale and disposal of previously impaired crypto assets held. Crypto asset impairment, net is no longer recorded as a result of the adoption of ASU 2023-08.
Current wording
Crypto asset impairment, net represents gross impairments recorded on crypto assets held, net of subsequent realized gains on the sale and disposal of previously impaired crypto assets held. Beginning in January 2024, we adopted ASU 2023-08, and no longer record Crypto asset impairment, net.
Previous wording
Restructuring expenses comprise separation pay, stock-based compensation, and other personnel costs related to reductions in our headcount. For more information, see Note 3. Restructuring of the Notes to our Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Current wording
Restructuring expenses comprise separation pay, stock-based compensation, and other personnel costs related to reductions in our headcount.
Previous wording
Other operating expense (income), net includes fair value gains and losses related to derivatives as well as platform-related incidents and losses. Because these components fluctuate with market conditions, Other operating expense (income), net can vary widely between periods.
Current wording
Other operating expense (income), net includes fair value gains and losses related to derivatives as well as platform-related incidents. The value of derivatives fluctuates with market conditions.
Previous wording
Other (income) expense, net includes the following items:
Current wording
Other expense (income), net includes the following items:
Previous wording
•fair value remeasurement gains and losses on crypto asset loan receivables on assets lent from our crypto assets held for investment portfolio; and
Current wording
•gains and losses on the fair value remeasurement of loan receivables originated from our crypto assets held for investment portfolio; and
Previous wording
•fair value remeasurement gains on other financial instruments held for investment.
Current wording
•fair value remeasurement gains and losses on other financial instruments held for investment.
Previous wording
Provision for (benefit from) income taxes includes income taxes related to foreign jurisdictions and U.S. federal and state income taxes.
Current wording
(Benefit from) provision for income taxes includes income taxes related to foreign jurisdictions and U.S. federal and state income taxes.
Previous wording
Comparison of the three months ended March 31, 2024 and 2023
Current wording
Comparison of the three and six months ended June 30, 2024 and 2023
Previous wording
For the three months ended March 31, 2024 and 2023 we generated 83% and 89%, respectively, of total revenue in the United States. No other country accounted for more than 10% of total revenue during the periods presented. International revenue comprised mainly of transaction revenue in all periods presented.
Current wording
For the three and six months ended June 30, 2024 we generated 85% and 84%, respectively, of total revenue in the U.S. For the three and six months ended June 30, 2023 we generated 90% and 89%, respectively, of total revenue in the U.S. No other country accounted for more than 10% of total revenue during the periods presented. International revenue comprised mainly transaction revenue in all periods presented.
Previous wording
Transaction revenue increased for the three months ended March 31, 2024 as compared to 2023, primarily due to:
Current wording
Transaction revenue increased for the three and six months ended June 30, 2024 as compared to 2023, due to:
Previous wording
•an increase in consumer transaction revenue due to a 167% increase in consumer Trading Volume;
Current wording
•an increase in consumer transaction revenue of $474.7 million and $1,023.3 million due to a 164% and 166% increase in consumer Trading Volume. This increase was offset in part by a decrease of $98.9 million and $41.5 million attributed to a lower average blended fee rate due to changes in the mix of Trading Volume between advanced and simple trading;
Previous wording
•an increase in institutional transaction revenue of $23.8 million due to a 106% increase in institutional Trading Volume and an increase of $39.3 million as a result of an 85% increase in the average blended fee rate. The average blended fee rate increased as there was a significant reduction in the discounts that we offered to certain market maker customers beginning in February 2023; and
Current wording
•an increase in institutional transaction revenue of $22.3 million and $61.6 million as a result of a higher average blended fee rate, and an increase of $24.2 million and $48.0 million due to 142% and 120% higher institutional Trading Volume. The increase in average blended fee rate was primarily due to a significant reduction in discounts offered to certain market maker customers as compared to 2023; and
Previous wording
•an increase in other transaction revenue primarily due to Base revenue, resulting from the launch of Base in the third quarter of 2023.
Current wording
•an increase in other transaction revenue, primarily due to the launch of Base in the third quarter of 2023.
Previous wording
Subscription and services revenue increased for the three months ended March 31, 2024 as compared to 2023, primarily due to:
Current wording
Subscription and services revenue increased for the three and six months ended June 30, 2024 as compared to 2023, due to:
Previous wording
•an increase in other subscription and services revenue due to a $17.0 million increase from developer products as a result of higher average crypto asset prices, and an increase of $11.8 million in Coinbase One revenue driven by an increase of 136% in paid subscribers.
Current wording
•an increase in other subscription and services revenue, primarily due to growth of $25.7 million and $37.5 million in Coinbase One revenue, as the number of paid subscribers grew driven by market conditions and improvements to our product offerings, as well as an increase in revenue from developer products driven largely by higher average crypto asset prices.
Previous wording
Other revenue increased for the three months ended March 31, 2024 as compared to 2023, primarily due tohigher average earned interest rates on corporate balances, which rose 88 basis points, as well as higher average corporate balances.
Current wording
Other revenue increased for the three and six months ended June 30, 2024 as compared to 2023, primarily reflecting an increase of $7.3 million and $20.0 million due to higher average earned interest rates on corporate balances, which rose 50 and 84 basis points, as well as higher average corporate balances.
Previous wording
In order to achieve our goal of positive Adjusted EBITDA for the remainder of 2024, we are committed to being adaptable and responsive tooverall macro market conditions and revenue opportunities. We plan to dynamically adjust our expense base, increasing or decreasing it as needed, especially with respect to certain variable expenses. In the second quarter of 2024, we expect technology and development and general and administrative expenses to grow due to increased customer support and infrastructure expenses associated with higher trading volumes. Additionally, we expect sales and marketing expenses to grow significantly as compared to the first quarter of 2024, primarily driven by USDC customer rewards and seasonally higher NBA sponsorship related spend.
Current wording
In order to achieve our goal of positive Adjusted EBITDA for the remainder of 2024, we are committed to being adaptable and responsive tooverall macro market conditions and revenue opportunities. We plan to dynamically adjust our expense base, increasing or decreasing it as needed, especially with respect to certain variable expenses. In the third quarter of 2024, we expect technology and development and general and administrative expenses to grow mainly due to the non-linear expense recognition of stock-based compensation. Additionally, we expect sales and marketing expenses to grow as compared to the second quarter of 2024 primarily as a result of higher variable digital marketing.
Previous wording
Transaction expense increased for the three months ended March 31, 2024 as compared to 2023, primarily due to:
Current wording
Transaction expense increased for the three and six months ended June 30, 2024 as compared to 2023, due to:
Previous wording
•an increase in blockchain rewards fees, which increased in line with blockchain rewards revenue;
Current wording
•an increase in blockchain rewards fees, which increased generally in line with blockchain rewards revenue;
Previous wording
Technology and development expenses remained flat for the three months ended March 31, 2024, as compared to 2023, as higher personnel-related expenses were offset by decreased website hosting and infrastructure expenses, amortization expense, and other, where no individual material changes were noted. Personnel-related expenses were higher due to an increase in stock-based compensation expense as a result of the 2023 annual employee equity awards being granted at a lower stock price as compared to the 2024 annual employee equity awards.
Current wording
•an increase in personnel-related expenses primarily due to an increase in stock-based compensation expense as a result of the 2023 annual employee equity awards being granted at a lower stock price as compared to the 2024 annual employee equity awards; and
Previous wording
There were no material changes to note within personnel-related expense, marketing programs, or other.
Current wording
There were no material changes to note within personnel-related or other.
Previous wording
General and administrative expenses increased for the three months ended March 31, 2024, as compared to 2023, primarily due to:
Current wording
General and administrative expenses increased for the three and six months ended June 30, 2024 as compared to 2023, due to:
Previous wording
•higher personnel-related expenses driven by increased stock-based compensation expense as a result of the 2023 annual employee equity awards being granted at a lower stock price as compared to the 2024 annual employee equity rewards;
Current wording
•an increase in personnel-related expenses driven by increased stock-based compensation expense as a result of the 2023 annual employee equity awards being granted at a lower stock price as compared to the 2024 annual employee equity rewards;
Previous wording
•an increase in customer support costs as a result of increased capacity needs. Our capacity needs may increase in periods following higher Trading Volumes; and
Current wording
•an increase in customer support costs as a result of increased capacity needs. Our capacity needs typically increase in periods following higher Trading Volumes;
Showing the first 40 of 75 pairs. Open the source sections for the rest.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
We define a Monthly Transacting User (“MTU”) as a consumer who actively or passively transacts in one or more products on our platform at least once during the rolling 28-day period ending on the date of measurement. Quarterly MTUs are the average of each month’s MTUs in each respective quarter.
Current report — wording carried from elsewhere
Losses (gains) on crypto assets held for operations, net
Current report — wording carried from elsewhere
Losses (gains) on crypto assets held for investment, net
Current report — wording carried from elsewhere
Losses (gains) on crypto assets held for operations, net
Current report — wording carried from elsewhere
Changes in other operating expense (income), net for the three and six months ended June 30, 2024 as compared to 2023, were due to:
Current report — wording carried from elsewhere
Losses (gains) on crypto assets held for investment, net
Rearranged previous paragraphs (6)
Previous report — wording carried elsewhere
Gains on crypto assets held for operations, net
Previous report — wording carried elsewhere
Gains on crypto assets held for investment, net
Previous report — wording carried elsewhere
Gains on crypto assets held for operations, net
Previous report — wording carried elsewhere
Gains on crypto assets held for investment, net
Previous report — wording carried elsewhere
•unrealized fair value remeasurement gains on other financial instruments.
Previous report — wording carried elsewhere
•a $128.0 million increase in cash used towards the origination of fiat loans, net of repayments due to growth in Prime Financing; offset in part by