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Crypto-Focused Public Companies Outdo Q2 Profit Projections, Boosted by Cryptocurrency Price Surge

Andrew Throuvalas
Last updated: | 1 min read
Source: Adobe / Sutthiphong

Major crypto companies reported strong earnings last quarter as swelling crypto asset prices drove up profits across the industry.

Last week, institutional Bitcoin (BTC) giant MicroStrategy reported a return to profit in Q2, with $120.4 million in revenue. The company also stacked an additional 12,800 BTC over the quarter at an average price of $28,233 per coin, bringing its total holdings to 152,800 BTC ($4.5 billion).

The same report logged $22.2 million in net income over the quarter, and an increase in cash holdings since Q4 2022 from $43.8 million to $66 million.

Meanwhile, Block – the financial services company founded by Bitcoin bull Jack Dorsey – increased its year-over-year Bitcoin revenue by 34% to $2.4 billion. This generated $44 million in profit for the company – a 7% YOY increase.

“The year-over-year increase in bitcoin revenue and gross profit was driven by an increase in the quantity of bitcoin sold to customers, partially offset by a decrease in the average market price of bitcoin compared to the prior-year period,” the firm’s Q2 earnings report stated last week.

Overall, the firm produced $5.53 billion in revenue last quarter, up over 25% from the year prior.

Why Bitcoin Is Rising

Bitcoin’s price is up 78% year-to-date, largely thanks to a slew of bank failures shaking confidence in the banking system, and growing excitement around a potential Bitcoin spot ETF launching in the United States.

These events have allowed the top cryptocurrency to stay afloat even amid a slew of enforcement actions against crypto companies by the Securities and Exchange Commission (SEC). Even Coinbase (COIN) –  the crypto exchange sued by the agency in June over alleged securities law violations – has seen its stock surge 161% this year, mirroring Bitcoin’s behavior.

In its own Q2 earnings post, Coinbase posted $663 million in revenue, which was mostly comprised of non-trading revenue for the first time ever. Though still down 10% from last year, the company’s losses were reduced to less than $100 million.

Robinhood, the popular crypto and stocks trading platform, had one of the biggest turnarounds this quarter, flipping profitable for the first time since going public. It scored a net income of $25 million, or $0.03 earnings per share, versus a loss of $511 million (-$0.57 per share). 

Nevertheless, the firm still recorded declining net revenue across crypto, equities, and transaction volume.