Coinbase & Marathon Profit Dip, MicroStrategy Boosts Bitcoin Holdings: Q2 Crypto Market Updates

The crypto giant reported a consumer transaction revenue of $781 million, showing a 27% decline compared to Q1. Similarly, Coinbase trading volumes dropped by 28%. On a brighter note, the exchange witnessed a remarkable 300% quarter-on-quarter surge in transactions on its layer-2 network, Base. Furthermore, subscription and services revenue rose by 17% to reach $599 million, primarily driven by the increased average balances of USDC on the platform and its market capitalization. The report also emphasized the positive impact of higher average crypto prices, especially for Solana (SOL) and Ethereum (ETH), on the company’s performance.
Coinbase Predictions its Q3 subscriptions and services revenue to reach between $530 and $600 million by 2025. While these figures slightly missed analysts’ predictions, Coinbase stock (COIN) still enjoyed a modest increase of about 5% late Thursday after the announcement. Notably, COIN has surged 135% over the past year, indicating strong investor confidence. Despite the slight revenue miss, Coinbase remains a market leader in the cryptocurrency exchange industry, positioning itself for future growth.

American crypto mining heavyweight Marathon Digital has unveiled its financial results for the second quarter of 2024, revealing a substantial net loss amidst a notable 78% surge in quarterly revenues, topping $145.1 million. The company’s latest Q2 report indicates a net loss of $199.7 million, equivalent to $0.72 per share, marking a significant jump from the $21.3 million loss incurred in the same period last year. This financial outcome could be attributed to several strategic decisions made by Marathon in recent times. Notably, the firm was compelled to offload a portion of its Bitcoin holdings to offset operational expenses.

Specifically, Marathon sold 51% of the 2,085 Bitcoin it mined during Q2 2024, a 30% increase compared to Q2 2023. This move was deemed necessary due to the Bitcoin Halving event, which halved the block reward, thus forcing mining entities to either expand their operations or exit the market entirely.
Marathon, a renowned firm, has recently purchased a staggering $100 million worth of Bitcoin (BTC) on the open market, elevating its BTC holdings to over 20,000. While the company’s disclosure remains mum on the specific acquisition cost, data from Bitcoin Treasuries reveals a notable trend: Marathon has bought back a greater amount of BTC compared to what it has sold. This significant move underscores the firm’s bullish sentiment towards the cryptocurrency market and its long-term commitment to Bitcoin.

MicroStrategy recently released its financial results for the second quarter of 2024, revealing a net loss of $102.6 million compared to an income of $22.2 million. Despite this loss, the company made a surprising announcement, purchasing a staggering 12,222 Bitcoins for $805 million, significantly boosting its Bitcoin holdings to 226,500 BTC, equivalent to $14.7 billion. This bold move underscores MicroStrategy’s commitment to cryptocurrency and its belief in the long-term value of Bitcoin.

However, the company also acknowledged upcoming financial obligations, including $45 million in interest expenses and an additional $20 million in cash taxes, resulting in a pre-tax net income of approximately $82 million. In a notable disclosure, MicroStrategy revealed that it had raised $2 billion through the issuance of convertible notes this year, with the proceeds being used to cover interest expenses and taxes. One reason for the revenue decline could be the company’s focus on acquiring BTC, which does not generate revenue but has significantly appreciated in value this year, effectively doubling the worth of MicroStrategy’s Bitcoin stash.
MicroStrategy’s Bitcoin holdings hit nearly $14.7 billion in Q2 2024, showcasing the company’s significant investment in the cryptocurrency market.

Stablecoin issuer Tether recently disclosed its revenue figures, revealing impressive growth in the first half of 2024. Despite its withdrawal from the European Union due to Markets in Crypto-Assets Regulation (MiCA) rules, the company achieved a record-breaking revenue of $5.2 billion. This remarkable performance sets Tether apart from most crypto firms, as evidenced by its profits reaching $1.3 billion in Q2 2024, marking another all-time high for the USDT issuer.
Tether CEO Parolo Ardoino has proudly celebrated the company’s success, describing it as a rare and valuable opportunity. In a detailed post on X, he emphasized Tether’s unique position and potential. However, it’s worth noting that while other companies like MicroStrategy and Marathon Digital have increased their Bitcoin holdings, Tether has taken a different approach.
According to Tether’s report ending June 30, the company’s Bitcoin balance stood at $4.73 billion, a decrease of 12% compared to its Q1 2024 report. This shift in strategy raises questions about Tether’s decision to deviate from its usual pattern of regular Bitcoin purchases. Nevertheless, the company’s strong financial performance indicates that it remains a significant player in the cryptocurrency market, despite any changes in its investment approach.
In conclusion, Tether’s revenue figures highlight the company’s resilience and growth potential, even in the face of regulatory challenges. Its decision to alter its Bitcoin investment strategy may reflect a changing market landscape and a desire to diversify its holdings. As the cryptocurrency industry continues to evolve, Tether’s adaptability and strategic decision-making will be key to maintaining its leading position.