As the second-quarter earnings report approaches, Coinbase Global Inc. COIN has seen a slight uptick in pre-market trading.
What Happened: On Thursday, Coinbase was trading at $227.37 in the pre-market session, a 1.34% increase from its Wednesday close of $224.36, according to Benzinga Pro. The company’s second-quarter earnings report is set to be released after the market closes on Thursday.
Why It Matters: The upcoming earnings report is expected to reveal the impact of the 2024 approval of Bitcoin BTC/USD and Ethereum ETH/USD ETFs on the demand for these top two cryptocurrencies. According to Benzinga Pro data, analysts predict Coinbase to report a revenue of $1.4 billion, a significant increase from last year’s second-quarter revenue of $707.9 million. This comes after a streak of six quarters where Coinbase has consistently beaten analysts’ revenue estimates.
However, it is worth noting that Cathie Wood’s Ark Invest has recently reduced its exposure to Coinbase amid a drop in Bitcoin. This information could potentially influence investor sentiment as the earnings report is released.
The company saw a significant surge in customer adoption and trading activity across its platforms, driven by the launch of several Bitcoin spot ETFs in the U.S. during the first quarter of 2024. However, the maturing crypto market and reduced volatility are also expected to impact Coinbase’s revenue.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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