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Cardano Founder Calls for Crypto-Focused Voting in Upcoming U.S. Elections Crypto Times
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Though subdued, it was a positive all-round performance for the crypto market in Q2 2023.
Following a minor crypto market rally, several crypto-focused companies have recorded an increase in revenue. MicroStrategy, Coinbase, Coinshares, Block, and Robinhood all posted record profits in Q2 2023 despite the general macroeconomic downturn.
MicroStrategy Invests in More Bitcoin to Beat the Market
MicroStrategy became profitable in Q2 2023 as Bitcoin (BTC) prices surged. The company increased its BTC holding by 12, 333 BTCs in just the second quarter. This brought its total BTC holding to 152,800.
“We efficiently raised capital through our at-the-market equity program and used cash from operations to continue to increase bitcoins on our balance sheet,” said Andrew Kang, Chief Financial Officer of MicroStrategy.
Consequently, MicroStrategy recorded a gross profit of $93.3 million, representing a 77.5% gross margin. It also reported minimal operational loss, ensuring its balance sheet remained positive.
According to the earnings report filed on Aug.1, MicroStrategy earned $22.2 million in net income. Comparatively, the firm made a gross profit of $96.9 million in Q2 2022 and a net loss of $1.1 billion.
Coinbase Remains in Loss Despite Crypto Market Rally
Meanwhile, Coinbase posted total revenue of $707.9 million in its Q2 2023 report. While it was down from $772.5 in Q1 and $808.3 million in Q2 2022, it still exceeded estimates. Also, the exchange recorded $335.4 million of net revenue from its subscriptions and services.
“One year ago in Q2 2022, we started reducing our expense base to operate more efficiently. One year later, we’re proud to say that our quarterly recurring operating expenses have dropped nearly 50% Y/Y,” the company noted.
Following its Q2 2023 earning report, Coinbase shares rose to $96.70, gaining 7%. The stock is up 170% year-to-date.
Is the Crypto Winter Effectively Over?
Though subdued, it was a positive all-round performance for the crypto market in Q2 2023. This has caused analysts to speculate that the crypto winter is over. As if to confirm this, the Nasdaq Crypto Index (NCI) increased by 6.3% quarterly (74.3% YTD), with Bitcoin leading the way by with more than 7% growth.
According to Hashdex, several factors combined to make the quarterly crypto market rally possible. On one end, Ethereum successfully activated Shanghai. Later, Ripple won its long-standing brawl against the SEC. On another front, BlackRock (followed by Fidelity, Invesco, WisdomTree, VanEck, Nasdaq, and Ark) applied for a spot Bitcoin ETF in the US and got accepted.
Whether or not the crypto winter is over will depend on how Q3 pans out for many more of these companies.
Nomura Holdings, one of Japan’s largest wealth managers, said it will set up a new unit to look into digital assets including cryptocurrencies and NFTs, citing growing potential in the space.
The company said in a press release it was reorganizing its Future Innovation Company into a newly-established Digital Company, starting next month. The main goal of the new firm will be to increase adoption of digital assets, while also offering related services to clients.
Digital assets such as cryptocurrencies, security tokens, and non-fungible tokens are gaining presence as a new asset class. The fusion of innovations stemming from distributed ledger technology with traditional finance is giving rise to a new range of services.
Nomura, which has about 74 trillion yen ($641 billion) worth of assets under management, said it would also boost digital adoption across all of its subsidiaries.
Crypto adoption on the rise
Nomura’s announcement follows the recent launch of an NFT marketplace by ecommerce giant Rakuten, as more companies jump onto the increasingly lucrative crypto space. Japan’s crypto industry is worth about $1 trillion, according to Bloomberg.
Earlier in February, Japan’s largest bank, MUFG, had also introduced a stablecoin platform. But Japan has some of the world’s strictest regulations on crypto. While the country does recognize digital assets, its exchanges face intense scrutiny in gaining a license. Still, crypto adoption by major corporates has been a growing trend since 2021. Electric carmaker Tesla accepts dogecoin at its supercharger stations, and also allows the purchase of merchandise through the token. Recently, U.S. online marketplace Ebay said it could start accepting crypto payments by as soon as next week. The firm already allows NFTs to trade on its platform.
On a national scale, the Russian invasion of Ukraine saw Kyiv adopt crypto to receive donations, the first time a country has done so. Ukrainians also piled into stablecoin Tether as the central bank suspended electronic cash transfers. Ukraine also announced an airdrop for crypto donors on March 3.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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