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Robinhood crypto trading rises 75% in Nov, CEO tips ‘9 figures’ in revenue

December 5, 2023 Coin Telegraph

Coin Telegraph

The trading platform posted a sharp rise in monthly crypto trading volumes in November, while CEO Vlad Tenev said he hopes to eventually reel in “nine figures” in annual revenue.

Crypto-friendly trading platform Robinhood has reported a 75% month-on-month increase in digital asset trading volume in November.

In an 8-K filing to the Securities and Exchange Commission on Dec.

The activity however equity trading volumes and options contracts traded were roughly flat in the same month compared to October.

The bumper month marks a reversal for Robinhood, which revealed a 55% decrease in cryptocurrency notional volumes over the year in its Q3 results filing.

As a result, its Q3 revenue came in below analyst estimates for the quarter at $467 million.

*Robinhood’s 8-K report showing preliminary operating data for November 2023. Source: SEC*

Robinhood could be eyeing a more profitable fourth quarter in light of the recent crypto market rally, which has seen total capitalization surge 40% to $1.6 trillion over the past two months.

Robinhood co-founder and CEO Vlad Tenev told investors in a November earnings call that the platform could eventually reel “nine figures” in annual revenue.

Marathon Digital sees 670% revenue gain in Q3 as Bitcoin production surges

November 9, 2023 Coin Telegraph

bitcoin production

Marathon announced a 467% increase in Bitcoin production year-on-year in the third quarter, while hashrate rose over 400% in the same timeframe.

Bitcoin mining firm Marathon Digital Holdings saw its revenue surge $670% year-on-year in the third quarter of 2023, amid a nearly five-fold increase in Bitcoin production.

The results saw Marathon also swing to a quarterly profit, with $64.1 million of net income in the third quarter, according to the firm’s Nov. 8 results filing.

The firm partly attributed the improved financial results to a 467% spike in Bitcoin (BTC) production from 6.7 mined BTC per day in Q3 2022 to 37.9 BTC per day in Q3 2023. Similarly, Marathon’s energized hashrate boosted 403% over the same timeframe.

Marathon’s Q3 Earnings Release is here:
- Revenue of $97.8M, due to 467% increase in #Bitcoin production and higher BTC prices.
- Adjusted EBITDA improves to $43.7M.
- 8% increase in hash rate; expanding with hydro-powered ventures in Paraguay.
- Long-term debt reduced by 56%,…
— Marathon Digital Holdings (NASDAQ: MARA) (@MarathonDH) November 8, 2023

Part of Marathon’s boost in hashrate came from its new, 27-megawatt hydro-powered mining venture in Paraguay, which it announced on Nov. 8.

Marathon’s CEO and chairman Fred Thiel said the “significant progress” has helped strengthen the firm’s balance sheet ahead of the Bitcoin halving event scheduled for April 2024.

A $417 million note exchange completed in September managed to reduce Marathon’s long-term debt to 56% and in doing so captured over $100 million in cash savings for shareholders, Thiel noted, adding:

“For the first time in two years, our combined cash and bitcoin holdings exceeded our debt at the quarter's end.”

Meanwhile, Marathon remains committed to increasing its hashrate in the short to mid-term.

Its installed hashrate currently sits at 23.1 exahashes per second but the firm is looking to boost that to 26 EH/s and a further 30% in 2024.

Marathon’s (MARA) share price fell 6.9% to $8.55 on Nov. 8 but rebounded 4.3% in after-hours trading following the release of Marathon’s earnings statement, according to Google Finance.

*MARA’s change in share price on Nov. 8 (including after-hours trading). Source: Google Finance.*

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Coinbase narrows loss while crypto trading volumes fall in Q3

November 2, 2023 Coin Telegraph

Adjusted EBITDA

Despite seeing falling trading volumes, Coinbase said they were “pleased” with how the quarter played out.

Cryptocurrency exchange Coinbase narrowed its net loss to $2 million in the third quarter, as notched a year-on-year increase in revenue despite lower trading volumes.

The firm’s net loss in Q3 was trimmed from a $545 million net loss in the prior year period, according to a Nov. 2 earnings statement.

Total revenue increased 14.2% year-on-year to $674.1 million, though quarter-on-quarter revenue fell 4.8%. The figure beat London Stock Exchange Group’s estimate of $653.2 million, according to a report from Reuters.

Of the total revenue, $334.4 million came from subscription and services (mostly stablecoin and blockchain rewards), while $288.6 million came from transaction-based revenues.

Our Q3’23 update is in.

Read the full shareholder letter and tune in to our earnings call here → https://t.co/fod43YZcAY pic.twitter.com/Iusjw1Uysx
— Coinbase ️ (@coinbase) November 2, 2023

Meanwhile, consumer trading volume came in at $11 billion, a fall from $26 billion in Q3 2022.

Institutional trading volumes came in at $65 billion, down from $78 million in Q2 and $133 million in Q3 2022.

These volumes have been trending downwards for five consecutive quarters.

Despite this, Coinbase said in a statement it was pleased with how the quarter played out:

“Q3 was a strong quarter for Coinbase. Amid multi-year low levels of volatility, we are pleased with our financial results.”

The exchange also produced a positive adjusted EBITDA for the third consecutive quarter — a sign that they’re building toward a “sustainable business” that can drive “long term growth,” it said.

Adjusted EBITDA stands for earnings before interest, taxes, depreciation and amortization and is a metric that provides analysts a means to make more meaningful comparisons to a variety of companies in the same industry.

*Coinbase’s revenue statement for Q3 2023. Source: Coinbase*

Coinbase’s share price (COIN) spiked 8.7% to $84.6 during trading hours but then fell 3.7% to $81.5 in after-hours trading,following the results filing, according to Google Finance.

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Bitcoin Ordinals haven’t wrestled blockspace from money TXs: Glassnode

September 27, 2023 Coin Telegraph

Bitcoin Miners

Inscriptions have been acting more as a "packing filler," stuffed into any remaining space once higher-value monetary transfers are packed into blocks, said the firm.

Despite concerns that Bitcoin Ordinals are clogging the network, there is little evidence to suggest inscriptions are taking blockspace away from higher-value Bitcoin (BTC) monetary transfers.

“There is minimal evidence that inscriptions are displacing monetary transfers,” on-chain analytics firm Glassnode explained in a Sept. 25 report.

The firm explained that this is likely because inscription users tend to set low fee rates, expressing willingness to wait longer periods of time for confirmation.

“Inscriptions appear to be buying and consuming the cheapest available blockspace, and are readily displaced by more urgent monetary transfers.”

Bitcoin Ordinals were introduced in Feburary 2023, and have since accounted for the lion’s share of network activity when it comes to daily transaction count.

However, this hasn’t necessarily been reflected in its share of mining fees, with inscriptions only attributing to about 20% of Bitcoin transaction fees, Glassnode noted.

*Inscription fee share between images, text, audio, video and other data types on Bitcoin. Source: Glassnode.*

More inscriptions means more revenue — but there’s a catch

While inscriptions have strengthened the base-load demand for blockspace and increased fees for miners, Glassnode says Bitcoin’s hashrate has also increased 50% since February.

This has resulted in tougher competition for miners looking to swoop in on revenue fees, says Glassnode:

“With extreme miner competition in play, and the halving event looming, it is likely that miners are on the edge of income stress, with their profitability to be tested unless BTC prices increase in the near term.”

Bitcoin is currently priced at $26,216 but many industry pundits expect some degree of price appreciation in the lead-up to Bitcoin’s halving event scheduled for April 2024.

Currently, most inscriptions come as a result of BRC-20 tokens, which were introduced one month after Casey Rodamor launched the Ordinals protocol on Bitcoin in February.

On Sept. 25, Rodarmor pitched “Runes” as a potential alternative to BRC-20s, suggesting that a UTXO-based fungible token protocol wouldn’t leave as much “junk” unspent transaction outputs on the Bitcoin network.

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Canaan’s 2Q mining revenue jumps 43% on 1Q, but net loss climbs 31%

August 29, 2023 Coin Telegraph

Bitcoin

Bitcoin mining firm Canaan posts second quarter financials, with Bitcoin mining revenue up 43% from Q1 2023, though net loss also rose 31% to $110 million.

Bitcoin mining company Canaan announced its unaudited financial results for Q2 2023, showing growth in computing power sold and BTC mining revenues while it tackled a significant net loss of $110 million. up 31% on Q1.

The NASDAQ-listed company outlined a variety of reasons influencing increased revenues and a significant headwind that included an inventory write-down and equipment impairment totaling $54 million.

Canaan recorded $73.9 million in revenue in Q2 2023, up from $55.2 million quarter-on-quarter. This consisted of $57.9 million from products revenue and $15.9 million in Bitcoin mining revenue.

BTC mining revenues reflected 43.3% growth compared to Q1’s $11.1 million, with Canaan’s 2023 Q2 more than doubling Q2 2022's $7.8 million in BTC mining revenues. The company attributed this surge to the recovery in Bitcoin prices and the consequent rise in Bitcoin rewards.

“The sequential increase was mainly driven by the Bitcoin price recovery and increased Bitcoin rewards across the network during the quarter.”

Canaan also reported significant growth in its total computing power sold, reaching 6.1 million Thash/s, up 45% quarter-on-quarter, with the sector becoming a major driver of revenue for the company.

Canaan also detailed net losses totalling $110.7 million in Q2, which it attributed to non-cash accruals and provisions reflecting changes in selling prices, regulatory shifts, and partner agreements.

Canaan CFO James Jin Cheng added that the losses included inventory write-down, provision for commitment reserve and impairment of property and equipment which totaled US$54.7 million.

“These non-cash accruals and provisions reflect our consideration of the latest selling price change, regulation changes in Kazakhstan, and the default by the partner at a U.S. project, which did not influence our cash flow.”

As of June 2023, Canaan’s listed cryptocurrency holdings included 1,125 BTC valued at US$28.8 million. 747 BTC are owned by Canaan, while 378 BTC are attributed to customer deposits.

Canaan also reported that it had suspended 2.0 exahash/s of its mining computing power based in Kazakhstan to ensure legal compliance with the Rules for Licensing of Digital Mining Activities coming into effect.

The company is in the process of obtaining a specialized license to continue its operations and expects a reduction in its Q3 BTC generation as a result of the offline hardware.

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Bitcoin miner Riot Platforms trims Q2 loss to $27.7M

August 9, 2023 Coin Telegraph

bitcoin miner

The firm managed to narrow net loss in the quarter as it ramped up Bitcoin production.

Colorado-based Bitcoin mining firm Riot Platforms narrowed its second quarter net loss to $27.7 million as it ramped up its Bitcoin production and reached record hash rate capacity.

The crypto miner posted total revenue of $76.7 million — up 5.2% from Q2 2022 — which was primarily driven by a 27% year-on-year increase in Bitcoin (BTC) production, offset by a decline in Bitcoin prices, according to the firm’s Aug. 9 results filing.

The firm’s mining revenue of $49.7 million attributed to 64.7% of the firm’s total revenue over the quarter. An additional $13.5 million was made through the firm’s power curtailment credits.

Meanwhile, its Q2 net loss was a massive reduction from the prior year period, which was $353.5 million. It was also around half the net loss posted in the first quarter of 2023.

*Riot Platforms managed to cut its net loss to $27.7 million in Q2. Source: Riot Platforms*

The firm produced 1,775 Bitcoin in the quarter, while its average cost to mine a Bitcoin (BTC) was $8,389 in Q2, beating beat Q1’s average price.

The mining firm also reached an all-time high hash rate capacity of 10.7 exahashes per second and anticipates this figure will reach 20.1 EH/s by the second quarter of 2024, before reaching 35.4 EH/s in 2025.

The estimates come following its purchase of 33,280 mining rigs in late June, with the 35.4 EH/s figure assuming that Riot will exercise its right to purchase an additional 66,560 miners at the same price and terms at some time in the near future.

*Riot predicts the facility's hash rate capacity to increase from 10.7 EH/s at current levels to 35.4 EH/s in 2025. Source: Riot Platforms*

Despite Riot’s share price falling 4.42% earlier in the day, its share price fell another 0.86% in after hours, shortly after the firm’s results were released.

*Riot’s share price fell 0.86% to $16.34 in after hours trading. Source: Google Finance*

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revenue

More inscriptions means more revenue — but there’s a catch

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