Crypto stocks underperform in Q3 2024 shareholder reports.
(Photo by Spencer Platt/Getty Images)
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Key Takeaways
Coinbase has seen revenues decline 27% quarter-on-quarter this year.
MicroStrategy’s gross profits are down, but Bitcoin earnings are up.
Marathon Digital is yet to publish its Q3 2024 earnings, yet the stock still took a hit.
The Q3 2024 earnings reports for some of crypto’s biggest players have been published, and it seems that it’s been a rather challenging year as figures continue to slide.
As a result, Coinbase (COIN), MicroStrategy (MSTR), and Marathon Digital (MARA) stocks have taken a hit.
In its Q3 2024 shareholder letter, Coinbase’s total revenue comes in at $1.2 billion—just below a forecasted $1.26 billion, down from $1.38 billion in Q2 (17%) and $1.58 billion in Q1.
Coinbase Q3 2024. Source: Coinbase
Though Coinbase had an underwhelming performance, it’s not all doom and gloom. In the report, the exchange notes that its layer-2 network, Base, has seen a solid 55% increase in transactions and twice as many new contracts deployed on the network.
With $1.3 billion in 24-hour trading volumes and $2.6 billion in total-value locked (TVL), Base is the most dominant Layer-2 by far.
Despite this, Coinbase (COIN) stock took a hit following the report’s publication on Wednesday, closing the day with a drop of 3.61% to $211.74 and an additional 4.84% decline to $201.5 in after-hours trading.
MicroStrategy (MSTR)
The world’s largest corporate holder of Bitcoin, MicroStrategy, has seen some mixed results in its Q3 2024 earnings.
One key metric was its 11% increase in BTC holdings, which stood at 252,220 at the end of the quarter. This strategy has yielded a solid year-to-date (YTD) return of 17.8%.
However, the firm did see a 10.3% drop in software revenue year-over-year, and gross dropped to $81.7 million.
In the earning call, MicroStrategy president and CEO Phong Lee outlined an ambitious “21/21” investment strategy:
“From the years 2025 to 2027, the company is targeting to raise $42 billion of capital, comprised of $21 billion of equity capital and $21 billion of fixed income capital, primarily for the purpose of acquiring bitcoin.”
After missing revenue estimates, MicroStrategy’s (MSTR) stock also took a hit following its earnings report, dropping 1.7% to $247.31 at the end of the day, but it has since gained 0.51% in premarket trading.
Marathon Digital (MARA)
Bitcoin mining firm Marathon Digital, which is yet to publish its Q3 2024 earnings report, appears to have been caught up in a broader lull in blockchain and crypto stock investor confidence.
Perhaps in anticipation of a second quarter in a row of declining revenues and earnings, investors were eager to get out ahead of the report’s publication.
Marathon Digital’s (MARA) stock took a 3.48% hit, dropping to $18.28, falling a further 0.44% in pre-market trading to $18.20
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
