Coinbase (NASDAQ: COIN) has released its Q3 2024 earnings, revealing a challenging quarter marked by missed revenue and earnings expectations.

MicroStrategy (Nasdaq: MSTR) released its Q3 2024 financial results on Wednesday, highlighting both its latest Bitcoin acquisition strategy and challenges within its software business.

Kraken is reportedly laying off 15% of its employees amid the internal restructuring the firm announced on Wednesday. According to sources The New York Times spoke to, the layoffs affect about 400 of Kraken’s approximately 2,600 employees and include key leadership exits, including COO Gilles BianRosa and CTO Vishnu Patankar.  

Top stories in the Crypto Roundup today:

• Coinbase Q3 Earnings Fall Short; Shares Slide as Trading Volumes Decline
• MicroStrategy to Raise $42 Billion for Bitcoin Purchases Amid Core Business Struggles 
• Crypto Exchange Kraken Reportedly Laying Off 15% of Its Workforce
• Chart of the Week: Bitcoin’s Market Cap and Dominance YTD

Coinbase Q3 Earnings Fall Short; Shares Slide as Trading Volumes Decline

Nasdaq-listed cryptocurrency exchange Coinbase has released its Q3 2024 earnings, revealing a challenging quarter marked by missed revenue and earnings expectations. The cryptocurrency exchange reported total revenue of $1.2 billion, slightly below the $1.26 billion forecasted by Wall Street analysts, according to an LSEG survey. Earnings per share (EPS) reached 30 cents, which also fell short of the predicted 41 cents.

In terms of revenue breakdown, Coinbase’s transaction revenue dropped to $573 million, a 27% decline compared to Q2, reflecting lower trading volumes and the recent crypto market turbulence.

Revenue from subscriptions and services, which includes staking and custody services, decreased by 7% to $556 million, largely influenced by lower crypto asset values despite some growth in unit numbers within these services. On the positive side, Coinbase managed to trim operating expenses by 6%, bringing them to just over $1 billion, primarily through reduced transaction expenses.

The quarter also saw Coinbase fortify its liquidity, ending with $8.2 billion in available capital—a $417 million increase over the previous quarter. Additionally, the board authorized a $1 billion share repurchase program to enhance shareholder returns.

Amid this, Coinbase emphasized its focus on regulatory clarity in the U.S., especially ahead of the upcoming elections, underscoring its role in advocating for clear crypto policies.

MicroStrategy to Raise $42 Billion for Bitcoin Purchases Amid Core Business Struggles

MicroStrategy (Nasdaq: MSTR) released its Q3 2024 financial results on Wednesday, highlighting both its latest Bitcoin acquisition strategy and challenges within its software business.

The company, which already amassed 242,220 BTC on its balance sheet, announced a three-year “21/21 Plan” to raise $42 billion—$21 billion in equity and $21 billion in fixed-income securities. This capital would be used to further grow its Bitcoin treasury, aiming to increase yield from these assets, according to CEO Phong Le.

During Q3, MicroStrategy raised $2.1 billion through equity and debt issuances, which it attributed to supporting this treasury strategy. The company’s Bitcoin holdings increased by 11% over the quarter, reaching a market value of $16.007 billion as of September 30.

MicroStrategy's BTC yield—a metric the company uses to assess the performance of its Bitcoin strategy—reached 17.8% for the year-to-date, though it revised its longer-term yield target to between 6% and 10% annually from 2025 to 2027.

However, MicroStrategy’s software segment reported a 10.3% year-over-year revenue decline to $116.1 million, with decreases in product license and support revenues partially offset by a 32.5% growth in subscription services.

The company’s gross profit margin also narrowed to 70.4%, down from 79.4% in Q3 2023m while operating expenses surged by over 300%, largely driven by a $412.1 million impairment on its digital assets, leading to an operating loss of $432.6 million for the quarter. This compares to a significantly smaller loss of $25.2 million in the same period last year.

Crypto Exchange Kraken Reportedly Laying Off 15% of Its Workforce

Kraken, a leading cryptocurrency exchange, is reportedly laying off 15% of its employees, amid internal restructuring the firm announced on Wednesday. According to sources close to the company that The New York Times cited, the layoffs affect about 400 of Kraken’s approximately 2,600 employees and include key leadership exits, including COO Gilles BianRosa and CTO Vishnu Patankar.

Arjun Sethi, co-founder and chairman of VC firm Tribe Capital and a member of the Kraken board since 2021, has been appointed as Kraken’s new co-CEO alongside Dave Ripley, who took over from Kraken founder Jesse Powell in 2023.

In a blog post, Sethi and Ripley emphasized a focus on increasing efficiency and simplifying management structures, stating that the company needed to be “leaner and faster” to strengthen its position in the competitive crypto market. They explained that this strategic move was meant to streamline operations and shift employee focus towards “building rather than managing.”

Despite a recent market recovery, with Bitcoin hitting record highs this year, job cuts in the sector persist, with companies like Consensys and dYdX also announcing layoffs this week.

Chart of the Week: Bitcoin’s Market Cap and Dominance YTD

Bitcoin traded at around $44,000 at the beginning of the year, with a market dominance near 50%, with these past few months seeing the cryptocurrency’s price surge past $73,600 and lifting its dominance to 57.3%.

Its performance has outpaced that of most altcoins year-to-date, driven by strong institutional demand and geopolitical uncertainty surrounding the upcoming US elections and a recent BRICS proposal exploring the potential use of BTC for international payments.

State of the Crypto by Top Tier Exchange Volume

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