In its second-ever earnings report as a public company, cryptocurrency exchange Coinbase appears to be on a winning streak, with revenues past 1000% and profits up almost 4900%.

Why should we care?
Coinbase, which went public in April, added additional legitimacy to a cryptocurrency industry under increasing regulatory scrutiny. In particular, the company and other industry participants are watching moves from the Securities and Exchange Commission, further to comments from Chair Gary Gensler, who recently hinted that regulators would tighten screws on cryptocurrency trading, lending and platforms. Despite these pressures, Coinbase’s march to go public also took place alongside growing mainstream financial industry interest in cryptocurrencies. More than 9,000 mainstream financial institutions are reportedly working with Coinbase to build crypto products. The company previously reported that it generates 96% of its revenue from transaction fees. The company has 8.8 million monthly transacting users and 68 million total users. While analysts may be bullish about Coinbase’s prospects, the company noted that it expects trading volumes in the third quarter to be lower than the second quarter, as August month-to-date volumes are lower than what was seen earlier in the year. Meanwhile, this week, Brett Redfearn, a former federal regulator who joined Coinbase as vice president of capital markets, reportedly left the company.