Crypto’s Quarterly Checkup: Which Stocks Will Shine in Q3 Earnings?

• Coinbase could report strong Q3 results.
• MicroStrategy’s Bitcoin holdings will likely impact its earnings.
• Riot Platforms drives revenue growth with its Block Mining acquisition.

The crypto industry is bracing for a critical earnings season, with several key players set to report their third-quarter results today.

The reports will provide valuable insights into the industry’s health and growth prospects.

Here’s what analysts expect from Coinbase, MicroStrategy, Robinhood, and Riot Platforms.

Coinbase: Strong Q3 Expected, But Growth Concerns Linger

Coinbase, the largest crypto exchange in the U.S., is poised to report strong Q3 earnings today , building on its momentum from the previous quarter.

Analysts project an 86.6% year-over-year revenue growth to $1.26 billion, driven by increasing adoption and trading activity.

Adjusted earnings could reach $0.41 per share.

While the company’s recent 22% share price increase and an average analyst price target of $237.35 suggest potential upside, concerns about its future growth trajectory linger.

MicroStrategy: Bitcoin Focus May Weigh on Earnings

MicroStrategy, a business intelligence software company turned Bitcoin maximalist, is expected to report a loss of $0.12 per share in Q3, according to analyst estimates. 

In the previous quarter, MSTR reported a loss per share of $0.57.

Over the past year, MSTR exceeded its EPS estimate only 25% of the time, lagging behind its industry average of 67%. MSTR has underperformed its industry in the last year.

The company’s focus on Bitcoin has introduced volatility in its earnings. MicroStrategy’s revenue forecast  of $121.45 million may not be enough to offset the impact of its Bitcoin holdings.

Despite this, eight Wall Street analysts have an average price target of $220.00— a 15% decrease.

Robinhood: Revenue Growth Accelerates

Robinhood (HOOD), the popular trading platform, could report a 39% year-over-year revenue growth to $649.4 million  thanks to its increasing user activity and trading volumes.

The company delivered a solid performance last quarter, surpassing revenue expectations by 6.1% and reporting a 40.3% year-over-year increase. The company also saw a 4.3% year-over-year growth in user base, reaching 24.2 million.

Analysts expect  adjusted earnings to reach $0.26 per share.

While the company’s strong performance last quarter has boosted investor sentiment, analysts remain divided on its growth prospects, with some raising revenue estimates and others lowering them.

Riot Platforms Surprising Growth May Continue

Riot Platforms, a cryptocurrency mining company, could report  a substantial 79% year-over-year revenue growth to $93 million, driven by the acquisition of Block Mining.

The company has a strong track record of beating earnings expectations, averaging a 166% earnings surprise over the past four quarters.

The Block Mining deal  will add 60 megawatts of operating capacity. This will position the company to achieve 75 EH/s of potential hash rate deployed.

Analysts expect a loss of 17 cents per share, a significant improvement from the year-ago quarter.

With a strong track record of beating earnings expectations, Riot Platforms could continue its surprising growth trajectory.