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When you buy through links on our articles, Future and its syndication partners may earn a commission. The main equity indexes rebounded from Thursday's sharp sell-off, but all three were down for the week. The trend for Treasury yields across the maturity spectrum reflects growing concerns about persistent inflation, government debt and how the Federal Reserve will respond. At the closing bell on Friday, the blue-chip Dow Jones Industrial Average had added 1.0% to 53,277, but still finished the week lower by 0.8%. The tech-heavy Nasdaq Composite was up 0.4% to 26,180, narrowing its weekly decline to 2.1%. The S&P 500 rose 0.4% to 7,674, though the broad-based index lost 1.4% this week. "It's not surprising that the S&P 500 pulled back modestly after its early-August breakout to new record highs," observes Daniel Skelly, head of research and strategy for Morgan Stanley Wealth Management. "But the move may have taken on additional significance in some circles, given the role tech softness played." Skelly notes that although we may see more volatility in the near term due to seasonal factors, "the longer-term AI capex story remains positive." Meanwhile, the bond market continues to adjust to a Treasury Department plan announced on Wednesday to increase buybacks of longer-dated debt. The yield on the 2-year Treasury was up to 4.232% vs 4.185% on Thursday. The 2-year was at 4.171% last Friday. The 10-year Treasury ticked up to 4.736% from 4.698% on Thursday and 4.696% a week ago. The 30-year Treasury climbed to 5.274%, up from 5.237% yesterday and 5.266% at the end of last week. Looking for more timely stock market news to help gauge the health of your portfolio? Sign up for Closing Bell, our free newsletter that's delivered straight to your inbox at the close of each trading day. Fed Chair Kevin Warsh will deliver the keynote address at the Kansas City Fed's annual Jackson Hole Economic Symposium on Friday, August 28, the highlight of next week's economic calendar. According to University of Pennsylvania Wharton School Professor Patrick Harker, a former president of the Philadelphia Fed, "Warsh is going to have to address the elephant in the room, which is inflation." Nvidia (NVDA, -1.0%) will offer fresh evidence for Skelly and others who see more support for stocks from AI capex when the chipmaker takes another turn on the earnings calendar after the closing bell next Wednesday. Wall Street expects management to report year-over-year earnings growth of 99.0% on annual revenue growth of 97.0%. "Notably," Susquehanna analyst Christopher Rolland writes in a preview of Nvidia's report, "AI demand is supported by increasing hyperscale capex plans. The top five hyperscalers are now expected to nearly double capex spend in 2026." Track all markets on TradingView Rolland also highlights a constructive outlook for 2027, when capex is expected to exceed $1 trillion. "We still view Nvidia as having one of the largest opportunity sets ahead," the analyst concludes. Indeed, as Louis Navellier of Navellier & Associates writes, "Due to the anticipation of Nvidia's spectacular quarterly results, plus the fact that the financial media will be all excited about their annual trip to Jackson Hole for the annual Kansas City Fed Conference, investor optimism is expected to be sky-high next week." Robinhood Markets (HOOD, +12.9%) led S&P 500 stocks higher on Friday after President Donald Trump advocated for passage of federal legislation that would establish a regulatory framework for digital assets such as bitcoin during a White House summit on Thursday. "We need Congress to take the next step by passing the Clarity Act — a fair version of the Clarity Act," Trump said in remarks prepared for the event. "It's a very, very powerful structured legislation which will keep us ahead of China, keep us ahead of everyone else, will open the door to the next wave of innovations and innovators." Track all markets on TradingView Crypto trading platform Coinbase Global (COIN, +8.2%) and bitcoin treasury company Strategy (MSTR, +6.1%) have also rallied on the president's recent endorsement of a broad bill to support digital assets. Moderna (MRNA, +8.9%) was the second-best performer in the S&P 500, following its 177% rise on Wednesday and 24% fall on Thursday with another dramatic move. Merck (MRK, +2.4%), Moderna's partner on the melanoma cancer vaccine that triggered this week's volatility, was second only to Goldman Sachs (GS, +3.7%) among Dow Jones stocks. Earnings Calendar and Analysis for Next Week What to Look Out for in Economic Data Next Week The Best Vanguard Bond Funds to Buy

Download the Complete Report Here Key Takeaways: Houdini materially changes the earnings mix and marks the clearest step yet in STKE’s evolution toward a broader blockchain infrastructure platform. STKE reported C$1.79 million of operating revenue in 3Q FY26 (quarter ending June 30, 2026), down 41% from C$3.04 million in the prior-year quarter, but the composition of revenue changed materially following the June 1 closing of Houdini. Swap aggregator fees contributed C$1.17 million from only one month of ownership, representing approximately 65% of quarterly operating revenue, while combined staking and validation income fell to C$622,000 from C$3.04 million y/y. Houdini also contributed C$768,000 of EBITDA, implying a 66% EBITDA margin, while the call separately referenced approximately C$685,000 of operating income and a margin of roughly 60%. We believe the quarter provides tangible evidence that STKE can add SOL-price-independent transaction revenue alongside validator infrastructure and a productive SOL treasury, broadening the earnings model within its core blockchain infrastructure strategy. STKE is increasingly organized around three interconnected value engines, validator infrastructure, privacy and cross-chain technology, and a productive SOL treasury, with each reinforcing the broader blockchain infrastructure platform. The validator business monetizes third-party SOL through staking commissions, MEV, and transaction fees without requiring STKE to own the delegated assets, creating a balance-sheet-light recurring revenue engine. The owned treasury adds a second layer by generating staking yield while also providing productive collateral that can support strategic financing and infrastructure expansion. Houdini and Zyga extend the model into privacy, cross-chain execution, transaction routing, and transaction and software-driven revenue across 120+ blockchain networks, with more than 50% of Houdini’s trailing transaction volume touching Solana. Together, the model increasingly combines infrastructure, treasury, and privacy technology that can compound through different but complementary economic channels, broadening STKE beyond a single-chain or token-price-dependent earnings model. Lower protocol issuance is accelerating the shift toward AuD, MEV and transaction-driven validator monetization. Staking income fell 59% y/y to C$530,000 from C$1.29 million, while validation service income declined 95% to approximately C$92,000 from C$1.75 million, taking combined income to C$622,000 versus C$3.04 million in 3Q FY25 and approximately C$1.15 million in 2Q FY26. Importantly, gross validator rewards fell to 2,531 SOL from 8,789 SOL y/y, while staking rewards declined to 4,295 SOL from 6,271 SOL. After 375 SOL of validator fees, net validator income was 2,156 SOL, taking total staking and validating income to 6,451 SOL versus 15,060 SOL a year ago, down 57%. This marks a change from 2Q, when weaker CAD revenue primarily reflected SOL-price pressure despite more resilient token-denominated generation. With Solana disinflation reducing issuance and network competition pressuring validator commissions, recovery increasingly depends on AuD, transaction activity, MEV capture, and monetization per delegated SOL rather than token price alone. We believe Houdini’s first month provides encouraging initial validation of the strategic rationale behind the acquisition and immediately adds a high-margin second operating engine. Houdini generated C$1.2 million of revenue and C$685,531 of operating income during June, implying a reported operating margin of ~59%. Management characterized the result as roughly 60% operating margin and 66% EBITDA margin, while noting that the first month was in line with expectations and that the June run-rate would imply a less-than-three-year payback on the acquisition before any future growth. Importantly, management also indicated that the September quarter was looking promising and that integration had been seamless to date, making 4Q FY26 the first period in which we will see three full months of Houdini inside consolidated results. Strong validator performance and embedded distribution provide a foundation to rebuild AuD and expand monetization per SOL. Assets under Delegation ended June at 3.4 million SOL, or ~C$355 million, down ~11% from 3.8 million SOL at March quarter-end and 8% from 3.74 million SOL a year ago, while STKE continued to serve 33,000+ unique wallets and maintained 100% validator uptime. Orangefin generated a 5.84% average APY in June versus the Solana network average of 5.53%, a 31 bps advantage, while the Seeker validator alone had attracted 27,000+ wallets. Together with STKE’s role as sole staking provider to the VanEck Solana ETF, these embedded and institutional channels provide balance-sheet-light routes to stabilize and rebuild delegation after AuD declined from more than 4.0 million SOL earlier in FY26. The owned treasury remains a productive third value engine, generating recurring staking yield while providing strategic balance-sheet flexibility. As of June 30, 2026, STKE held 459,792 SOL, more than 4.5x the 100,746 SOL held around its FY24 pivot, alongside additional STKESOL and JTO positions. Approximately 205,620 SOL was staked directly to company-operated validators at quarter-end, with management indicating the owned treasury earns approximately 6% annual staking rewards. This creates a recurring yield stream independent of third-party delegation growth while retaining upside to SOL appreciation and providing productive collateral that can be deployed for strategic financing. The distinction is increasingly important as STKE broadens into Houdini: the treasury can continue compounding in SOL units while transaction infrastructure provides a separate cash-earnings engine, with the two supporting different but complementary sources of value creation. A key shift within the validator stack is from issuance-driven rewards toward transaction and liquid-staking economics. STKE’s infrastructure processes more than 1 million transactions per day, creating monetization opportunities through commissions, MEV and transaction fees as protocol emissions decline; during 3Q, the company began deploying Jito’s block assembly marketplace on two nodes to improve participation in transaction-driven economics. SIMD-0550 proposes faster Solana disinflation, while SIMD-0553 would introduce resource-based transaction fees tied more directly to network compute usage, potentially accelerating this shift. STKE indicated support for both proposals and said it intends to vote accordingly, viewing the changes as constructive for Solana’s longer-term economics despite the near-term pressure faster disinflation could place on staking rewards. STKESOL adds a separate fee-bearing layer, ending June with ~646,000 SOL across 1,300+ wallets versus ~768,000 SOL at March quarter-end, down ~16% q/q but still above the 500,000+ SOL deposited at launch. The product distributes stake across roughly 75 validators and allows STKE to earn a share of pooled staking rewards without owning the underlying SOL. As protocol issuance declines, growth in validator monetization should increasingly depend on AuD, MEV, transaction fees and STKESOL activity rather than token rewards alone. Zyga adds a proprietary technology layer that STKE can now potentially commercialize through Houdini’s existing distribution. STKE acquired substantially all of Darklake’s assets and core development team in April, including Zyga, a proprietary zero-knowledge proving system developed from technology that placed second in the DeFi track of the Colosseum Global Radar Hackathon among 1,300+ submissions. Zyga is designed to enable private, MEV-resistant execution and confidential on-chain workflows, with the team now evaluating applications across Houdini’s retail and B2B ecosystem. Houdini gives the technology an existing distribution base across wallets, exchanges and transaction flow rather than requiring standalone customer acquisition; successful integration could improve product differentiation, monetization per transaction and margins. Treasury-backed financing preserved SOL exposure while providing acquisition capital without liquidating core holdings. STKE financed Houdini’s cash consideration through Solana-based DeFi rather than selling SOL, with 252,851 SOL worth approximately C$26.4 million pledged to Kamino at June 30 against C$13.9 million of borrowings. The facility carried an approximately 3% variable rate and a 75% liquidation threshold, while pledged assets continued generating staking yield. At quarter-end, STKE had C$1.9 million of cash and C$37.3 million of current liabilities, but also C$48.3 million of digital assets, including roughly C$22 million of unencumbered assets available for liquidity. This approach preserved SOL exposure and avoided crystallizing a sale during weak market conditions, but increased the sensitivity of liquidity and collateral coverage to token prices ahead of the $5.75 million Houdini seller-note payment due December 1. Noncash charges mask a significantly narrower underlying EBITDA deficit, with Houdini beginning to demonstrate operating leverage. Effective June 1, STKE ceased qualifying as an investment entity under IFRS 10 and began consolidating controlled subsidiaries, including Houdini, making 3Q both an economic and reporting transition. STKE reported a C$17.6 million net loss, or C$0.49 per share, versus C$8.2 million, or C$0.40, y/y, including C$5.43 million of digital-asset revaluation losses, C$4.00 million of impairment, C$1.81 million of amortization, and C$1.30 million of share-based compensation. Management characterized more than C$15 million of quarterly expenses as noncash and cited an underlying EBITDA loss of just over C$1.1 million versus positive adjusted EBITDA of approximately C$1.3 million in 3Q FY25. Professional fees, management remuneration, and G&A increased approximately 70% y/y to C$2.58 million, while Houdini generated C$768,000 of EBITDA in June alone, making 4Q an important test of whether a full-quarter contribution can absorb the larger cost base and move underlying profitability toward breakeven. The expanded equity base has funded platform growth, but the 72% increase in shares outstanding raises the hurdle for per-share value creation. Shares outstanding increased approximately 72% from 23.0 million at September 30, 2025 to 39.5 million by mid-August through the LIFE financing, ATM issuance, convertible conversions, acquisition consideration, and other equity issuance. Through 9M FY26, operating activities used C$7.8 million of cash versus C$8.1 million y/y, while financing activities supplied C$31.8 million and investing activities consumed C$24.0 million, including treasury deployment and acquisitions. The capital raised has expanded STKE’s capacity to build the platform, but incremental value creation now depends on converting that investment into stronger revenue, EBITDA and per-share economics across Houdini, validator monetization and Zyga commercialization. 4Q should provide the first clear read on STKE’s transition toward a broader, more diversified infrastructure earnings model. Houdini contributed C$1.17 million of swap revenue and C$768,000 of EBITDA in only one month versus C$622,000 of staking and validation income for the entire 3Q, while the platform has expanded beyond 40 integrations and $2.8 billion of cumulative transaction volume. The setup into FY27 is increasingly driven by the contribution from these newer operating engines, with Street revenue estimates sourced from TIKR pointing to C$24.5 million of FY27 revenue. We would consequently focus near-term on a full quarter of Houdini revenue and margin durability, AuD stabilization from 3.4 million SOL, STKESOL flows from 646,000 SOL, Zyga commercialization, and liquidity execution. Delivery across those metrics would provide the clearest evidence that STKE’s infrastructure, treasury, and privacy technology are beginning to compound into a broader and more durable revenue model. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. We believe STKE should increasingly be valued as a blockchain infrastructure company rather than primarily through a treasury-based valuation framework. The business now combines validator infrastructure, cross-chain transaction and privacy technology through Houdini and Zyga, liquid staking through STKESOL, and a productive SOL treasury, creating multiple operating and asset-backed sources of value. Importantly, these engines are increasingly complementary: validators generate recurring fees on third-party assets, Houdini adds high-margin transaction revenue largely independent of SOL prices, Zyga adds proprietary privacy technology, and the treasury generates staking yield while providing financing flexibility. As this revenue mix broadens, we believe operating metrics such as revenue growth and margins should carry increasing weight alongside NAV. STKE trades at a substantial discount to blockchain infrastructure peers, providing a clear framework for operating-led rerating. At $1.18 per share, STKE has a market capitalization of $46.6 million and trades at approximately 2.6x FY27E revenue estimate of C$24.5 million ($17.7 million). This compares with an average of 6.6x for selected infrastructure peers Coinbase, Circle Internet Group and Securitize, which trade between 5.4x and 8.2x FY27E revenue. STKE is substantially smaller and earlier in its operating transition, supporting some discount, but the current gap remains significant. Applying the 6.6x peer average to FY27E revenue implies an illustrative equity value of approximately $117 million, or roughly $2.96 per share, broadly consistent with the Street’s $2.80 target. We view this as an illustrative rerating framework rather than a price target, with convergence dependent on sustained Houdini growth, improving revenue visibility and demonstrated operating leverage. The SOL treasury provides substantial asset backing underneath the infrastructure valuation and creates a second source of rerating potential. STKE’s direct SOL holdings are currently worth $38.9 million, equal to roughly 84% of the company’s $46.6 million market capitalization, leaving only a modest portion of current equity value above the treasury despite the operating businesses now inside the platform. STKE trades at approximately 1.20x mNAV versus 0.81x for the broader crypto treasury peer group, indicating that investors already assign some premium for its operating capabilities. We nevertheless view mNAV as a secondary valuation lens going forward. STKE has traded at higher treasury premiums during stronger crypto markets, and a recovery in SOL and broader digital asset sentiment could lift both NAV and the multiple applied to that NAV while operating infrastructure provides an independent path to value creation. Houdini provides a second tangible valuation anchor, while its operating footprint has expanded since closing. STKE acquired Houdini for approximately $18 million after the business generated roughly $13 million of revenue in 2025, providing an observable transaction reference for an asset that now represents a meaningful portion of consolidated revenue. Houdini contributed C$1.17 million of revenue and C$768,000 of EBITDA in June, its first consolidated month, while cumulative transaction volume has increased from approximately $2.5 billion around the acquisition to $2.8 billion and wallet and exchange integrations have expanded from 32 to more than 40. The $18 million acquisition value and $38.9 million SOL treasury together represent roughly $56.9 million of gross reference value, already above STKE’s current $46.6 million market capitalization before assigning standalone value to the validator platform, STKESOL or Zyga. This is not a direct equity-value calculation given STKE’s financing obligations, but it reinforces how little value the current capitalization appears to assign to the broader operating platform. Validator infrastructure, STKESOL and Zyga provide additional optionality beyond the two most visible valuation anchors. STKE supports 3.4 million SOL of AuD, maintains 100% validator uptime and has embedded institutional distribution through relationships including the VanEck Solana ETF, while STKESOL holds approximately 646,000 SOL across 1,300+ wallets and provides an additional fee-bearing layer. Zyga adds proprietary privacy and execution technology that can be commercialized through Houdini’s expanding distribution. We would not assign precise standalone values to these businesses at their current stage, but each creates additional opportunities for recurring fee, transaction and software revenue that are not fully captured by treasury NAV or Houdini’s acquisition value alone. The rerating opportunity is therefore supported by both operating growth and underlying asset value, creating an attractive asymmetry if execution improves. The clearest catalysts are sustained Houdini revenue and margins through its first full quarter, continued B2B and integration growth, stabilization of AuD from 3.4 million SOL, renewed STKESOL growth, commercialization of Zyga, and progress toward the C$24.5 million FY27 Street revenue expectation. A stronger SOL and crypto market could provide an additional catalyst through higher treasury NAV and renewed mNAV expansion. The principal offsets remain leverage, pledged SOL, dilution and the $5.75 million Houdini seller-note payment due December 1, making cash generation and per-share value creation important to realizing the rerating. Overall, we believe STKE’s current revenue multiple understates the combined value of a growing blockchain infrastructure platform supported by a substantial productive SOL treasury. Read Exec Edge’s Initiation on STKE Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post SOL Strategies Evolving Into Broader Blockchain Platform – Quarterly Update Report appeared first on ExecEdge.

Webull rallies 7% into Q2 earnings as analysts project 16% revenue growth, while Vlad Tenev drives Robinhood 7% higher lobbying for tokenized stock approval. Coinbase surges 11% on Bitcoin's rally but remains down 35% YTD, pulling ARKF up just 4% in a bounce rather than a trend reversal. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Robinhood didn't make the cut. Grab the names FREE today. Retail brokerage stocks are rallying midday Wednesday as Bitcoin (CRYPTO:BTC) surges and two separate company stories converge on the same crypto catalyst. Webull (NASDAQ:BULL) shares are up 7% to $8.49 ahead of the company's Q2 2026 earnings report after the close, while Robinhood Markets (NASDAQ:HOOD) shares are climbing 7% to $98.45 as CEO Vlad Tenev pushes U.S. regulators to approve tokenized stocks. Coinbase (NASDAQ:COIN) shares are up 11% to $163.32, extending a sharp bounce for the largest U.S. crypto exchange. Bitcoin is trading around $68,500, up 6% over the past 24 hours. The action reads as a bounce inside a down year rather than a trend change. Robinhood Markets stock was down 19% year to date (YTD) through Tuesday's close, and Coinbase stock is down 35% YTD. Webull will report Q2 2026 results on August 19 after the close. Three analysts project average revenue of $182.83 million for the quarter, up from $156.94 million a year earlier. The consensus EPS estimate sits at $0.03, below the $0.06 Webull posted a year earlier. The setup follows a strong Q1 2026 print. Webull reported Q1 revenue of $159.9 million, up 36% year over year (YoY), with customer assets of $24 billion (up 90%) and equity notional volume of $261 billion. Elimination of the Pattern Day Trader rule took effect June 4, and Webull's average account size sits just below $5,000, so a large share of its customers were directly affected by the old rule. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Robinhood didn't make the cut. Grab the names FREE today. U.S. CEO Anthony Denier told analysts in May he expected the change to lift transaction activity by at least 20% over time, saying, "This is not going to happen on day one on June 4, but I believe this will happen over time." Of the four analysts covering Webull, three rate the stock Strong Buy and one rates it Hold, with an average price target of $12.33. Robinhood Markets CEO Vlad Tenev argued in a post on X that the United States risks ceding next-generation financial market infrastructure to overseas competitors. Tenev called tokenization "the best path to modernizing the American financial system and expanding the dream of ownership to all." He added, "It would be a strange outcome if the rest of the world could build the future of ownership around American assets while Americans themselves were left behind." Robinhood Markets has made tokenized U.S. stocks available in more than 120 countries and has tokenized more than 190 U.S. stocks, backed 1:1 by underlying shares. Holders do not directly own those underlying shares, a distinction that has given U.S. regulators pause. Robinhood Chain, the permissionless Ethereum-compatible Layer 2 launched in July, became the fastest Ethereum Virtual Machine chain to reach 100 million transactions. The Kobeissi Letter said total trading volume in on-chain tokenized equities reached $9 billion in 2026, a record representing growth of more than 207% quarter over quarter and more than 800% YTD. Coinbase shares are up 11% to $163.32 as Bitcoin rallies, with no company-specific catalyst identified today beyond the broader crypto rally and a friendlier regulatory backdrop. Per Investor's Business Daily, the Senate has set a date for a vote on the CLARITY Act, the SEC has proposed new rules for crypto offerings, and the White House is preparing to host a crypto summit. Even with today's rip, Coinbase stock remains one of the weaker fintech names in 2026, reflecting soft spot volumes and a Q2 miss earlier this summer. The bounce narrative depends on Bitcoin holding its gains. The ARK Fintech Innovation ETF (NYSEARCA:ARKF) is up 4% to $44.2, tracking the fintech and crypto-linked names inside the portfolio. ARKF is an actively managed thematic fund with meaningful exposure to crypto and blockchain issuers alongside Robinhood Markets and Coinbase, which sit at 4.5% and 5.8% of net assets, respectively. ARKF shares were down 11% YTD through Tuesday's close. Actively managed thematic funds carry single-manager risk and holdings-concentration risk, so position sizing matters when the group swings hard in either direction. The Webull earnings report after the close is the next real data point, with the conference call likely to focus on PDT-driven volume, AI product traction, and international expansion. Investors can stay tuned for management's read on July and August activity, since Webull now publishes monthly operating metrics. The tokenization push from Robinhood Markets sets up the next regulatory beat, with the CLARITY Act vote as the near-term marker. Traders may want to keep an eye on whether Coinbase and Bitcoin hold their gains into Thursday, because a fade in crypto prices would pull the fintech complex back down quickly. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Robinhood didn't make the cut. Grab the names FREE today. Contact [email protected] for any questions or corrections.

Interested in Circle Internet Group, Inc.? Here are five stocks we like better. Q2 revenue and reserve income rose 7% to $701 million, while adjusted EBITDA increased 8% to $143 million. USDC circulation grew 19% year over year to $73.3 billion, although the reserve return rate fell to 3.48%. USDC network activity accelerated, with daily on-chain transaction volume up 151% to $163 billion. Circle also renewed its Coinbase agreement and said its Arc institutional blockchain mainnet is scheduled to launch Sept. 16, with DTCC and BlackRock partnerships. Circle raised its 2026 other-revenue outlook to $310 million-$330 million, primarily due to expected Arc-related revenue, and lifted its revenue-less-distribution-cost margin forecast to 41.7%-43.7%. Its payments network reached $23 billion in annualized volume as of July 31. Blueprint for a Banking Fortress: Circle Redraws the Map Circle Internet Group (NYSE:CRCL) reported second-quarter total revenue and reserve income of $701 million, up 7% from a year earlier, as growth in USDC circulation and other revenue was partly offset by a lower reserve return rate. USDC circulation ended the quarter at $73.3 billion, increasing 19% year over year, while average circulation reached a quarterly record of $76.5 billion, according to Chief Financial Officer Jeremy Fox-Geen. The reserve return rate was 3.48%, down 66 basis points from the prior-year period, reflecting a decline in SOFR. → 3 Drone Stocks That Should Soar After the Summer Slump Circle’s IBM Patent Deal Could Redraw the Stablecoin Infrastructure Race Adjusted EBITDA rose 8% year over year to $143 million, with an adjusted EBITDA margin of 50%. Revenue less distribution costs margin was 41.2%, up three percentage points from a year earlier. Adjusted operating expenses increased 23% to $146 million as Circle continued to invest in product development, market infrastructure and artificial intelligence capabilities. Chief Executive Officer Jeremy Allaire said USDC transaction activity continued to expand despite weakness in broader digital asset markets. Daily on-chain transaction volume averaged $163 billion during the quarter, up 151% year over year, while total quarterly minting and redemption volume reached $170 billion. Circle said daily minting and redemption averaged $1.9 billion, up 105% from a year earlier. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth MarketBeat Week in Review – 07/06 - 07/10 Circle cited Visa data indicating that USDC accounted for nearly 70% of stablecoin transaction volume in June. Fox-Geen said the figure was up from 36% in the second quarter of the prior year. The company also said that USDC balances held in Circle’s platform infrastructure rose 106% year over year to $12.4 billion, representing 17% of total circulation. The company renewed its agreement with Coinbase under existing terms, Allaire said, keeping USDC central to Coinbase’s products. Circle also addressed competition for stablecoin distribution, saying it has more than 150 distribution partners with economic incentives to support USDC and that it can work with Coinbase on additional distribution arrangements when appropriate. → Jersey Mike's Serves Fresh Gains After IPO Stumble Circle said USDC held on Coinbase’s platform represented 30% of total circulation at quarter-end. Hyperliquid accounted for roughly 6% of that total, according to Fox-Geen. The company said its new arrangement with Hyperliquid had minimal second-quarter financial impact because the migration to Coinbase’s platform occurred late in the quarter, with effects expected to begin appearing in the third quarter. Circle said its Arc Mainnet is scheduled to launch Sept. 16. The company described Arc as financial-market infrastructure designed for institutions and said more than 100 partners were active on its private mainnet ahead of the public release. Arc’s testnet had processed more than 500 million transactions across nearly 3 million wallets, Allaire said. The company announced partnerships with DTCC and BlackRock related to the network. DTCC is collaborating with Circle on tokenized securities, initially focused on enabling tokenization of DTC-custodied assets on Arc. BlackRock plans to deploy its BUIDL fund on Arc, where Circle said native USDC integration could allow institutional investors to subscribe, redeem and deploy fund assets in one on-chain environment. Circle also said it received final approval for an OCC national trust bank charter and later received a limited-purpose trust charter from New York state. Allaire said Circle National Trust will provide a federally supervised foundation for digital-asset services and allow core USDC infrastructure to operate within that framework. Circle Payments Network, or CPN, reached nearly $15 billion in annualized total payment volume on a trailing 30-day basis at the end of the second quarter. The company said the figure rose to $23 billion as of July 31, representing 130% growth since its prior earnings report. CPN had 175 financial institutions at quarter-end, up nearly 30% sequentially, and its products were operating across more than 58 countries, Circle said. Allaire said Circle expects to begin monetizing the payments network in the second half of the year. The company also highlighted growth in other digital assets. EURC increased 2.2 times year over year, while USYC, Circle’s tokenized money market fund, grew tenfold to more than $3 billion in assets, according to Allaire. Circle said it is also investing in agentic-finance tools, including its Agent Stack and support for the x402 payment protocol. Allaire said USDC, alongside protocols including x402, handles 99.3% of agentic payments, and that more than 900 paid services were available in the company’s agent marketplace. Fox-Geen raised Circle’s 2026 other-revenue outlook to between $310 million and $330 million, from a prior range of $150 million to $170 million. The revision was driven primarily by Arc-related revenue. Circle said it completed a $242 million presale of the ARC Token during the second quarter and expects to recognize revenue as product milestones are achieved. Based on its roadmap, the company expects to complete about 75% of those milestones during 2026, contributing approximately $180 million to revised guidance. The remaining products are expected to generate $130 million to $150 million in other revenue. The company raised its full-year revenue-less-distribution-cost margin outlook to 41.7% to 43.7%, from 38% to 40%. It maintained adjusted operating expense guidance of $570 million to $585 million, though Fox-Geen said Circle expects results near the upper end of that range. Circle reiterated its view that a 40% multi-year, through-cycle compound annual growth rate for USDC is achievable. Fox-Geen said the company expects growth to be supported by regulated markets, enterprise adoption, international use cases and broader use of blockchain-based financial infrastructure. Circle Internet Group (NYSE: CRCL) is a financial technology company that builds infrastructure to enable businesses and developers to use and move money on public blockchains. Co-founded by Jeremy Allaire and Sean Neville, the company is best known as a principal issuer and steward of USDC, a dollar-pegged stablecoin developed through the CENTRE Consortium, which Circle co-founded with Coinbase. Jeremy Allaire serves as CEO and has been a visible leader in the company’s strategy and public engagement around digital currency and payments innovation. Circle’s core products and services center on digital currency issuance and programmable payments. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Circle Internet Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes Circle's leadership to deep competitive moats in trust, liquidity, and regulatory standing, holding over 55 licenses across major jurisdictions. The renewal of the Coinbase partnership on existing terms ensures USDC remains central to Coinbase's product ecosystem, reinforcing a critical distribution channel. The receipt of an OCC National Trust Bank charter provides a federally supervised foundation, intended to project Circle's infrastructure into global corporate and capital markets. Performance in Q2 was driven by robust transactional utility, with USDC reaching nearly 70% of stablecoin transaction volume in June despite broader digital asset market weakness. Strategic positioning is shifting toward 'agentic finance,' with management building infrastructure to enable AI agents to earn, monetize, and transact using USDC. The upcoming Arc Mainnet launch is framed as a foundational 'economic operating system' supported by a cohort of global financial institutions acting as network validators. Management maintains a multiyear through-cycle growth framework of a 40% CAGR for USDC circulation, citing massive addressable markets in noninterest-earning money. The Arc Mainnet launch scheduled for September 16 is expected to drive significant 'other revenue' through staking, transaction fees, and token milestones. Guidance for 2026 includes $180 million in revenue from the Arc token presale, with approximately 75% of related product milestones expected to be achieved within the year. Circle plans to begin monetizing the Circle Payments Network (CPN) in the second half of 2026, following a period of scaling that reached a $23 billion annualized volume run rate. The company is transitioning to an 'agentic corporation' model, aiming to orchestrate hybrid teams of humans and AI agents to increase internal product development velocity. Management made a deliberate strategic decision to prioritize Arc development over new blockchain partnerships, leading to a temporary moderation in subscription and services revenue. A $242 million presale of the Arc token was executed in Q2, representing a significant new high-margin revenue stream for the platform. The reserve return rate declined 66 basis points year-over-year to 3.48%, reflecting the downward movement of SOFR during the period. Operating expense guidance was maintained at the higher end of the $570 million to $585 million range to support aggressive investment in AI and Arc infrastructure. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted active bipartisan negotiations in the Senate, though timing for a floor motion remains uncertain. The GENIUS Act, becoming effective in January 2027, is viewed as the more critical bedrock for legal digital dollars in the U.S. financial system. Allaire dismissed the threat of new consortiums, noting that 70% of companies expressing interest in those projects are already active participants in the USDC network. Circle maintains the ability to form win-win distribution arrangements and revenue-share agreements, such as the recent Hyperliquid collaboration with Coinbase. CFO Fox-Geen explicitly ruled out dividends, stating Circle is a 'future market growth stock' that prioritizes reinvesting cash into the platform for long-term returns. The company intends to maintain a strong balance sheet to remain opportunistic through market cycles. Revenue will be derived from stablecoin adoption within AI applications and transaction fees on the Arc infrastructure designed for high-velocity agentic payments. Circle is focusing on open standards for agent identity and reputation to ensure USDC becomes the preferred form of money for AI agents.

Image source: The Motley Fool. Thursday, July 30, 2026 at 5:00 p.m. ET Cofounder and Chief Executive Officer - Brian Armstrong Chief Financial Officer - Alesia Jeanne Haas Need a quote from a Motley Fool analyst? Email [email protected] Anil K. Gupta: During today's discussion, we may make forward looking statements that may vary materially from our actual results. Please refer to our SEC filings and earnings presentation for information concerning risks, uncertainties and other that could cause these results to differ. In addition, our discussion today may include certain non GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are provided in the earnings presentation on our Investor Relations website. Alesia Jeanne Haas: Hey, everyone. Thanks for joining us live on X today. I am Alesia Jeanne Haas. CFO of Coinbase, and I am here with our cofounder and CEO, Brian Armstrong. We are also joined today by a group of independent and institutional research analysts. We are excited to connect directly with you, our customers, our community, our shareholders to talk about our quarter and answer your questions. Operator: So we are going to take our first question from an independent analyst named Eric Pan. Eric, over to you. Eric Pan: Hey there. Eric Pan. Ericdomics here. Great to see you guys again since the systems update in New York. My question is around CLARITY. As CLARITY is at the 1-yard line and now out for the senate for a vote, Prediction markets and Galaxy Research have odds a bit passing around roughly 30%, and August recess is right around the corner. Now I really wanna be optimistic about this, but also imagining a scenario of a world where it does not really get passed. So my question is, what is going to happen with 1 Coinbase Are you guys just going to be more careful while kind of being in this limbo between CFTC and SEC? And then 2, us, the everyday consumers, if it does not get passed. Brian Armstrong: Yeah. I will take that 1. So, first off, I am pretty optimistic that it will get to a full senate floor vote. there is a lot of last minute negotiations happening, which to me is a sign that everyone is invested in getting something over the line. I mean, there is just thousands and thousands of hours that have been spent by the senate staff and the senators themselves on getting a really good work product. And like every good negotiation, there is a lot of last minute details to get right, but having a deadline or a forcing function with this August recess for the senate is actually a good thing. It tends to get people to the table at the last minute. So there is been lots of phone calls happening this week. Now, of course, there is more steps that would need to happen for it to become law after the senate floor vote, and you can never say 100% with these things. So I am anyway, I am optimistic it can get done. By the way, big shout out to the Stand with Crypto advocates who sent, I think, over a million emails and phone calls to their representatives to help get that through. But your question was about what happens if it does not pass, and I think in that world, it is actually kind of just business as usual for Coinbase for a few reasons. 1 is that, I mean, we already do many of the things that would be required by the CLARITY Act as just a good best practice. But more importantly, maybe Chair Atkins and Gensler at the SEC and the CFTC respectively, they have publicly said that they are poised to pass clear rules whether CLARITY passes or not. I think they have been kind of in a holding pattern do not speak for them, but I think they are in a bit of a holding pattern waiting to see what happens with CLARITY. And if it does not, go through for some reason, then they would come out with their own rules that would allow businesses like Coinbase to continue to operate. And have more clarity. So we still think on margin, it is better if the CLARITY Act passes. It creates durability through multiple administrations. People can make longer term investments. But it is really the American consumers, as you mentioned, who would lose if CLARITY does not, I think Coinbase would be fine. Eric Pan: Thank you. Operator: Alright. We are moving to our next question, and this is going to come from institutional research analyst Owen Lau at Clear Street. Owen Lau: Thank you, Alesia, and also Brian. Could you please talk about the reason Coinbase joining Onyx USD? Some people think, Onyx USD is a major threat. to USDC. Obviously, Onyx USD is not even launched yet, so there are no hard figures we can compare with But why does Coinbase participate in a competing stablecoin platform? Competing stablecoins? And in relation to that, does it increase your leverage to negotiate the contract with Circle? I actually saw that it is auto renewed on the same terms, but I keep getting this question. Do you need to self partnerships for negotiation? Thanks. Alesia Jeanne Haas: Can I address the partnership with Circle first, Brian, and then we can talk about our platform if that is okay with you? Brian Armstrong: Yeah. Sure. Alesia Jeanne Haas: So we have already met the conditions for the circle contract to renew, it will renew on the same terms. I wanna take away any ambiguity about that, for the market. Owen. So we will continue to work on growing USDC partnering with Circle, driving that ecosystem. Now why Onyx USD, Brian? Brian Armstrong: Over to you. Yeah. I mean, the short reason is that we are a multi stablecoin platform. We wanna provide stablecoins that all of our customers want to use And where possible, we want to strike good economic arrangements with them. Now we have a great partnership with Circle and USDC. that is been-- we have arguably the strongest economics on that point from that point of view. But make sure that we strike economic deals with every major stablecoin out there and support everything. So we actually already support other stablecoins, things like PayPal, PYUSD, USD USDT, Tether. Right? So we are excited about this open USDC consortium, and we will keep investing in that. I think this just creates additional business opportunities and revenue opportunities for us to be a multi stable coin platform. Not to mention, I guess, you know, FX trading, things like that. Thank you. Operator: Alright. Next question. Brian Jung. Brian Jung: Hey, Brian. Hey, Alesia. it is good to see you guys again. I am really curious about your relationship right now that you have with retail. You had your appearance on Market Bubble. You announced Cobie was taking over the base app. I feel like these are some early signals that Coinbase here wants to really reconnect with the crypto native users. Can you just tell me more about your thoughts on this and what made you really take this kind of pivot recently? Brian Armstrong: Yeah. So we have lots of different groups that like to use Coinbase and build on top of the base chain is even probably a broader group. And so, we try to make an effort to connect with all of them. it is really a pretty diverse group of people that use Coinbase. Right? there is the largest, like, G SIB banks in the world are building on our infrastructure. We also are having AI agents spin up wallets on top of our architecture. We have, fintechs and payment service providers. We have a huge segment of retail have simple traders. We have advanced traders. And, of course, there is this crypto native community that you mentioned. So that is a very important constituency that we go connect with. They are more Internet native, you know, sometimes I have to make sure I-- you know, I am 43 now, so I have to in the weeds on some of the lingo and the norms and whatnot, but we have great people on our team to go speak to all of these different constituencies with more depth than I than I have. And, you know, you mentioned Cobie. he is 1 of the folks that just joined recently, and I think he comes from that community, which is really good. And I will continue to go on podcasts that speak to all these different groups, including the crypto native community. Brian Jung: I appreciate that. Thanks. Brian Armstrong: Yeah. Thank you. Operator: Alright. Next question from Kenneth Worthington Hi, Brian and Alesia. Kenneth Worthington: Nice seeing you both, and thank you for letting me participate here. There were a number of departures from your senior leadership team this quarter. Why did you hire these high profile trainers a short period of time? what is the strategy with regard to HR? Faith? Legal, and institutional, with new-- Brian Armstrong: You broke up there for a little bit, but I think I got the gist of it and you mentioned strategy. there is nothing that is changing about the strategy, but I guess what I would say is 1 of the I am most proud about Coinbase is we have a really deep bench of talent We have a really good succession planning process. And so we have had lots of folks that are long tenured. it is normal for people to turn over at different points. But what I am really bullish about is we just have amazing talent that is at the company a while that is ready to go step up into these roles. And I think it is really a strength of ours. So, yeah, I am exciting. Excited to see what that turns out to be. Alesia Jeanne Haas: Yeah. I just wanna underpin my excitement around the bench of talent that we have and all of the folks that you have been introduced to. Dominique, who will lead our people function, Molly leading our new legal function, or Liz. Each of them has been groomed by the outgoing leaders, and I think that we are excited for generation of talent. But these are all individual decisions, so there is nothing from a strategy standpoint to read into these changes. Operator: Alright. Next question. Austin Hankwitz. Austin Hankwitz: Hey, y'all. How's it going? Austin Hankwitz here, cohost of the Rich Habits Podcast. And head analyst at GRID Capital. Thanks again so much for letting me tag along. Brian, you all said last quarter that customers do not choose Coinbase because you are the cheapest. They choose you because you are the most trusted. You also said over 90% of agentic stablecoin transaction volume settles on base, but an AI agent has no brand loyalty It simply optimizes for cost and latency. So as agents become a larger share of volume, does that trust mode transfer to them, or does agentic commerce structurally now push Coinbase toward competing on price? In a way that maybe the consumer business never had to? Would love to get your take. Brian Armstrong: Well, I am glad you are thinking about how we are going to serve AI agents as customers. Along with humans, which, you know, I have been thinking a lot about as well. I think the short answer to your question is that actually, I think AI agents are probably going to care about a similar set of things that humans would. Certainly, price is 1 of those factors and, you know, Base actually delivers, like, subcent and sub 1 second settlement. So it is, like, very competitive from that point of view. But I also think AI agents are going to choose infrastructure that is reliable and safe and liquid and compliant and has good uptime. Just like they might choose AWS or some kind of cloud vendor for different types of infrastructure, you could imagine. So long way of saying, I think trust will continue to be important in that world. And we are gonna be rolling out the red carpet for AI agents and make sure that we are serving them appropriately. Austin Hankwitz: Love it. Operator: Alright. Our next question, Alexander Markgraf from KeyBanc Capital Markets. Alexander Markgraff: Hey, Brian. Hey, Alesia. Thanks for doing this and including me. Coinbase has launched many new products since December 25th. I think the product velocity has certainly stepped up. I am curious to understand how the team is thinking about driving cross product adoption. And specifically bringing new users in through various entry points that are newer products to the platform. So would be helpful just to understand the strategy there and then if there is any detail on sort of marketing dollar allocation as you think about that approach would be helpful. Thanks. Alesia Jeanne Haas: Alright. Why do not I start on this 1? So our whole strategy starts with providing safe storage of customer assets and driving our assets on platform. We find when customers store with us, they transact with us. So then when we get to our growth marketing strategy, it really looks to what product is meeting the market need and where do we see activity coming from in our retail customer base. Currently, we are seeing a lot of success with growth marketing efforts around markets and also crypto trading, some of the new products that we have offered in derivatives as well. We are typically seeing a 1-year payback on growth marketing efforts but recently we have outperformed this benchmark. We have also early signals customers who are engaging with these new products, for example, prediction markets, are also driving incremental spot trading volume. So we are not seeing cannibalization. These early days are actually indicating that we are seeing incremental trading coming as we then cross sell and have more customers adopt more products on our platform. Brian Armstrong: Yeah. Just to underscore that, I mean, the asset accumulation is a core part of the strategy there. When we see customers trust us, we have the most trusted brand in crypto. We store crypto more than any other company out there. If they are willing to store a customer to store their assets with us, then whenever they come back for the 1 product that they are using today, we have a chance to put something in front of them and over time, they can adopt additional products. And it tends to be good for user retention, the more products they use and the more assets they store with us. So we have various incentives set up to encourage more of that. For instance, you can get a higher rate on the coinbase 1 card, the more that your more assets you are storing with us. We look at tiers like that to get people incentivized to store more assets with us over time. Operator: Alright. Now we are gonna go back to the top. So, Eric Pan, question number 2. Eric Pan: Sure. Thank you. So Coinbase continues to diversify and decouple your revenue streams as Bitcoin related transactions used to comprise more than half the entire company's revenue, and now it is at a staggering 12% of the business. So what other revenue verticals are you guys really focusing on? I know you guys are making a big push on the Agentic commerce side, so we would love to hear more about that along with other verticals. Brian Armstrong: Yeah. Well, thanks for noticing that. I mean, we are diversifying revenue both on the trading fee side, and on subscription and services with nontrading fees. So on the trading fee side, I mean, you are seeing we are seeing good adoption of things like, yeah, prediction markets, perpetual futures. Seeing our overall trading volume share grow. Know, we added stock trading. there is various things that we have talked about on the horizon, you know, like, stock options trading. So I think that the diversity of revenue on trading fees specifically will continue to happen. And I think Bitcoin will come back in a big way too. By the way, it keeps going through these cycles. So at any given time in trading, there is always something that is up and something that is down. And so you have to have-- really that is part of the everything exchange strategy. You have got to have all the stock the shelves stocked so you have the inventory when people when that thing trends that week. And then on the non trading fee side with subscription and services, we have seen good growth of that over the past years as well. And it just allows our business to be a bit more predictable. So yeah. Alesia, anything you wanna add on that? Alesia Jeanne Haas: 1 thing I wanted to share that maybe people looked past is that we saw an all time high in paid Coinbase 1 subscribers this quarter. And what that is really indicating to us and this is during a down market, We saw crypto trading volumes down, but growth in Coinbase 1 memberships. And so it really speaks to then the value of the subscription product, and these tend to be our most deeply engaged customers that try out the most products and services we offer. So that is another important growth factor that we think we can really drive membership and engagement through our platform through that subscription product. Eric Pan: Thank you. Brian Armstrong: Yeah. You asked I think you asked about Agentic finance as well or-- yes, AIFI. I think it is still very early days on that. I would say Coinbase has an early lead, you know, from an agentic finance point of view. We are seeing the majority of the transactions happening on with USDC and base and X402 and Coinbase developer platform has been a really great resource for people on that. But it is still quite early, so do not think we have any specific numbers or forecast to share on that at the moment. Eric Pan: Sounds good. And I just really wanna make a comment that I really love the fact you guys are building the rails amongst all of this. So when the $450 trillion global asset market moves on chain, when the rails get rebuilt, Coinbase is well positioned to be able to capitalize on all of that because you guys own the plumbing. So I really love that. Thank you. Brian Armstrong: Yeah. Yeah. Thank you. Building for the future here. Operator: Alright. Owen. Owen Lau from Clear Street. Back to you. Owen Lau: Thank you, Alesia. Last month, Coinbase started to offer pre IPO perpetual futures for non US traders to gain access to private companies. The first 1 was SpaceX. Could you please talk about the next step and the pipeline you are building When should we expect to see more private companies? And do you have timeline for when this product can be offered to US customers? Thanks a lot. Brian Armstrong: Yeah. So the early traction is definitely encouraging on the pre IPO perps. And there is a lot of customer demand for it. In terms of US access, that is on the road map. I will keep pushing on that. Yeah, I think it is important to get people access to these kinds of things that they historically could not get access to. it is a good part of democratizing the financial system. So we will keep pushing on that from a US approval point of view. Owen Lau: Thanks a lot. Operator: Alright. Brian Jung, back over to you. Brian Jung: Yeah. Thanks, guys. So, Brian, I am particularly interested the evolving competitive landscape right now in crypto, especially with Robinhood. They announced that they were expanding deeper into crypto. They recently launched their own L2. How do you view them as a competitor? And particularly, how do you view them in relation to the whole base ecosystem? Brian Armstrong: Yeah. So we are seeing lots of different companies come out and launch their own chain now, which, you know, in a way is normal. Like, whenever you have an a growing market, you see initially fragmentation And then over time, you typically see consolidation. We have seen that, you know, that is this has been true for automobiles and you know, trains and all kinds of things historically. But even in the crypto space, I think we saw this with stablecoins where just it seemed like there was a period of time where every company was coming out with their own stablecoin, and there was a belief that we all have to have our own. And then it is turned out that despite all of those new stablecoins being announced, the market share of say, USDC and Tether has not really shrunk by almost any amount over the last year or so. So maybe a very de minimis amount. So I think what we are what people found out in stablecoins is that there is an actual network effect to stablecoins. And customers if you are sending and receiving between platforms, which is a big part of the utility of it, then you want to keep it all in a stablecoin that you know. You do not wanna have to be paying sort of an x FX or conversion fee every time you use a stablecoin. So my guess is we are gonna see something similar happen with blockchains and you know, Stripe is has launched 1 and Robinhood has launched 1. Some of them are a little bit more special purpose, I guess, in what they are they are targeting. And then know, the largest blockchains out there, Ethereum and Solana, are still kinda more general purpose. So an interesting question about whether where when the consolidation phase will start to happen. And, of course, Base has been doing really well as the largest L2 on Ethereum. You know, it is it is the it is the most liquid market for instance, like, with crypto spot trading, like Bitcoin and Ethereum. You know, I think it is number 1 now in terms of stablecoin volume. I think it did about, like, 32 bill 32 trillion in the last 12 months of stablecoin transfer volume. it is also the leader in AgenTic. Finance. Right? We have seen like I mentioned earlier, the payments that are happening with X402 and those kind things. They are happening predominantly on base. So you know, I am very excited about base. I think it is an incredible innovation. I think you know, there is a path to, decentralize it over time, which we have said publicly in the past. Where we want lots of companies to be able to build on it as neutral infrastructure, and we have been making good progress on that through the different stages of decentralization. We have got really like a 2-year head start, I would say. We are gonna continue to invest in base. We are gonna make sure everyone can build on top of it. And then you know, we probably will see more companies launch their own. And then the question is, how and when will that consolidation phase happen? And how might there be sort of an M&A-type process in the world of blockchains? Like, we have seen small examples of that in the past, but who knows? We might have to become a bit of a specialist in that area. Brian Jung: I love it. Thank you. Operator: Alright. Kenneth Worthington from JPMorgan. Kenneth Worthington: Hi. The relationship with Hyperliquid seems to demonstrate that if a third party has enough USDC, it can leverage the position into commanding the majority of the USDC economics. How do you continue to invest in the USDC network, bring in new participants, and still protect the longer term economics as the network strengthens. Alesia Jeanne Haas: Maybe I will start with this 1, Kenneth. So anybody is welcome to come to Coinbase and become a customer and hold USDC on our platform and participate in rewards. We want to welcome institutional customers to do this, if you are a Coinbase 1 member as a retail holder, you are also welcome to come and earn rewards on your USDC by participating in our products and services. So we did not view Hyperliquid any differently in that way. They are obviously a very important market player in the overall perpetual futures ecosystem, and we believe that this partnership will drive broader network effect, broader USDC by deeply embedding it in an important player that has a lot of its own market maker activity. With stablecoins, with underlying protocols, even base, Liquidity network effect are critically important, and so bringing USD deeply into this ecosystem just further drives USDC growth and adoption throughout the globe. So that was our strategy. This is what we think is the right long term strategy for stablecoins, and we are happy to share economics to drive this network effect. Brian Armstrong: Just to underscore that, We are going to keep investing in USDC to keep growing it. And you know, it is actually it is already number 1 if you look at, stablecoin transaction volume. Which is great. it is it is already number 1, the number 1 regulated stablecoin in the world. The only 1 that it has not achieved the number 1 on is if you look at regulated and under regulated, and then you say, what is the market cap or the assets under management? That then you know, you could say it is number 2 compared to Tether. So I do think it is important for us to continue sharing economics to grow USDC and get it to be number 1 across all of those categories, not just 2 out of 3. And you know, that there is disproportionate gains to being the number 1 in the market. So we are gonna keep doing that to try to help it out. Alesia Jeanne Haas: Absolutely. Operator: Alright. Austin Hankwitz: Austin Hankwitz, over to you. Hey, Alesia. So you already alluded to this earlier, but I kind of want to linger on it for a little bit, which is Coinbase 1 past a million subscribers. Now you just said, you know, new all time highs. You have also said that members trade more and generate higher revenue per user. But that said, members do get these zero fee trading, and you have noted that you can still capture a spread that books to, you know, that retail transaction revenue. But as more volume shifts under this Coinbase 1 umbrella, is revenue per dollar traded higher or lower for a Coinbase 1 member than a nonmember? So, you know, should investors read this growth in Coinbase 1 as accretive or as take rate compression? Thank you. Alesia Jeanne Haas: Great question. I am gonna give an unsatisfying answer because when I look at the data on average Coinbase 1 subscribers trade more and have higher unit economics, there is always examples on the edges. And so I think that what you will see obviously is the revenue will not just all accrue to the trading revenue area because those Coinbase 1 users, they are also staking. They are also using their Coinbase 1 credit card. So we are earning revenue in multiple ways to the Coinbase 1 membership, but what we see is it is an accretive relationship because it is just driving up and down the product stack. So I think overall, this will be more net unique economic positive to us. We also see better retention rates and better engagement rates. But you will see the revenue shift through the p and l if we see broad adoption and a shift from just a la carte users to Coinbase 1. Subscribers. Austin Hankwitz: That makes a ton of sense to me. Thank you so much for walking me through that. Operator: Alright. Next, we have Alexander Markgraf. Alexander, we are not able to hear you. If you wanna try something with your mic. Alright. We will give them a minute. And if we lose him, then think then we will have ended the call for this quarter. Give him 2 more seconds. Alright. Well, that wraps up our Q2 2026 earnings call on x. Thank you all for joining us, and we look forward to seeing you next quarter. Thanks, y'all. Before you buy stock in Coinbase Global, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coinbase Global wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $386,727!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,232,139!* Now, it’s worth noting Stock Advisor’s total average return is 906% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 3, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy. Coinbase (COIN) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Hut 8 Corp (NASDAQ:HUT) secured $7.5 billion in investment-grade, non-recourse project financing for two construction-stage campuses, demonstrating strong capital formation capability. The company signed three 15-year leases with investment-grade counterparties in nine months, totaling ~949 MW of contracted AI data center capacity and ~$26.6 billion in expected base term contract value. Revenue grew 81% year-over-year to $74.9 million, with gross margin expanding to 64% from 47%, and adjusted EBITDA improved to $10.4 million from $4.2 million. The parent balance sheet was simplified: the $159.3 million CO2 note converted to equity, eliminating the only parent recourse debt, and the Coinbase facility was refinanced at a lower 7% coupon. The development pipeline grew to 8.7 GW, with 11 sites under exclusivity, and the company is seeing increased inbound M&A and behind-the-meter opportunities, indicating platform momentum. Beacon Point Building 2 lease (352 MW, $9.8 billion) demonstrates repeatability and customer expansion, with the campus now fully commercialized at 1 GW. Construction at Riverbend is on track, with structural steel erection underway and substation steel erection started, supporting on-time delivery confidence. GAAP net loss of $177.1 million was driven by a $138 million non-cash mark-to-market loss on digital assets due to Bitcoin's decline. General and administrative expenses surged to $76.1 million from $30.2 million, with $43.6 million in share-based compensation and higher cash salaries, raising concerns about cost discipline. Interest expense increased sharply due to $7.5 billion in project financings, though partially offset by $27.1 million in interest income and $5.7 million in capitalized interest. Power revenue declined to $1.2 million from $5.5 million due to the sale of the Far North portfolio, reducing a revenue stream. The company faces execution risk as it delivers projects of unprecedented scale, and regulatory scrutiny (e.g., Texas Governor's letter) could impact development timelines. The equity component for Beacon Point Phase 2 financing is not yet fully defined, and the company may need to use its balance sheet, potentially diluting shareholders. Bitcoin market sentiment and liquidity remain weak, affecting the value of the company's Bitcoin holdings and American Bitcoin's stock price. Warning! GuruFocus has detected 2 Warning Sign with HUT. Is HUT fairly valued? Test your thesis with our free DCF calculator. Q: What does the second Beacon Point lease demonstrate, and what is its financial impact?A: Asher Ganute (CEO) stated that the second Beacon Point lease, for 352 megawatts of IT capacity and approximately $9.8 billion in expected base term contract value, is a key proof point that the company's framework is repeatable. It shows an existing customer chose to expand under the same commercial framework, which is one of the strongest forms of validation. With this lease, the campus is now fully commercialized with a full gigawatt of utility capacity. At the platform level, Beacon Point now represents 704 megawatts of contracted IT capacity (roughly $19.6 billion in contract value), and combined with Riverbend, total contracted AI data center capacity is about 949 megawatts, representing roughly $26.6 billion in aggregate base term contract value. Q: How should investors reconcile the significant GAAP net loss with the improved revenue and adjusted EBITDA?A: Sean Glennon (CFO) explained that the operating business grew, with revenue increasing approximately 81% year-over-year to $74.9 million and gross margin expanding to approximately 64%. Adjusted EBITDA, excluding digital asset mark-to-market movements, was $10.4 million, up from $4.2 million in the prior year. The GAAP net loss of $177.1 million was driven primarily by a $138 million loss in digital assets due to Bitcoin's decline during the quarter, a non-cash mark-to-market swing compared to the prior year period when Bitcoin increased. Q: What is the right way to interpret the balance sheet, given the large increases in cash and debt?A: Sean Glennon (CFO) clarified that the balance sheet figures are dominated by project-level financing. At June 30, the company had approximately $233.6 million of unrestricted cash and approximately $6.8 billion of restricted cash held in project accounts for construction. The majority of the $7.6 billion in debt consists of the $3.25 billion Riverbend notes and $4.25 billion Beacon Point notes, which sit at bankruptcy-remote project subsidiaries and are non-recourse to the parent company. Each project is designed to service its own debt from its own contracted lease cash flows, ring-fencing project risk and preserving parent flexibility. Q: How did the financing for Beacon Point improve on the Riverbend financing, and what does that signal?A: Asher Ganute (CEO) said the Beacon Point financing consisted of $4.25 billion in senior secured notes, which were rated one notch higher and priced 20 basis points inside of Riverbend. The offering was substantially oversubscribed, and amortization was pushed from two years on Riverbend to four years on Beacon Point. Ganute emphasized that the company did not copy the transaction but structured every term from first principles, earning better terms through disciplined execution. Together, the two financings represent approximately $7.5 billion of investment grade capital raised for construction-stage development. Q: What is the company's view on behind-the-meter power generation, and why is it excluded from the development pipeline?A: Asher Ganute (CEO) stated that behind-the-meter capacity will happen and is the fastest speed to power, with customers and grids wanting it. However, it is excluded from the reported pipeline because including it would be "disingenuous" and could make the numbers far exceed the reported 8.7 gigawatts. He explained that if a site has land and an interconnect, the company could put as many megawatts as the pipeline can support, so these opportunities are treated like M&A and reported as additional catalysts when they become executable and contracted. Q: How does the company view the recent letter from Governor Abbott regarding data center development in Texas?A: Asher Ganute (CEO) said the company trusts the legislative process and is prepared to work with the PUC and ERCOT. Hut 8 feels confident in the package it put forward during the ERCOT process, which aligns with many of the points raised by Governor Abbott, including grid reliability, water usage, and environmental considerations. Ganute noted that the company voluntarily participated in the PE survey and provided all information on Beacon Point. He believes this increased process is healthy for the US and will help wash out weaker players, favoring more established developers with robust capabilities. Q: How does the company intend to fund the equity component associated with the Beacon Point Phase 2 lease?A: Asher Ganute (CEO) said the company has the balance sheet to support the equity commitment if it were to use the same structure as previous financings. He emphasized a first-principles approach to determine the most accretive structure for long-term value creation, considering the overall cost of capital across different mechanisms. Sean Glennon (CFO) added that the funding market remains open and receptive, but there will be discernment for quality leases, operators, and structures. He noted the company has developed a good following in the fixed income markets and expects the market to remain open for those who have executed well. Q: What is the company's current position and thinking regarding its ownership in American Bitcoin and its Bitcoin stack?A: Asher Ganute (CEO) said Hut 8 owns roughly 54% of American Bitcoin, which had a strong operating year with record Bitcoin mined and margins only decreasing single-digit percentage points despite Bitcoin's decline. He compared American Bitcoin's current situation to Hut 8's position two years ago, with a strong underlying business but less market attention. Regarding Hut 8's balance sheet, Ganute stated Bitcoin is a nice asset to have, but there is no need to hold it. The company would sell Bitcoin for opportunistic initiatives if needed, but has been able to finance projects without raising equity. All Bitcoin exposure will be through American Bitcoin. Q: How much of the CapEx is secured on contracted capacity, and how has the procurement strategy shifted?A: Asher Ganute (CEO) confirmed that the first building on each campus is fully contracted, with 100% of long lead time items, GC, and subcontractor pricing fixed. He noted that building two was cheaper than building one, and building three is expected to be cheaper than building two. The company focuses on building partnerships with suppliers rather than one-off purchases, which has mitigated lead time and capacity issues. Ganute emphasized a focus on driving down costs and building more efficiently, improving on time-to-build and cost-to-build with each subsequent project. Q: How should investors think about gross margins and adjusted EBITDA For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This earnings season, several crypto companies are reporting their financial results for the second quarter of the year. Last week, Robinhood Markets (Nasdaq: HOOD), Coinbase Global (Nasdaq: COIN), and Strategy (Nasdaq: MSTR) reported the earnings for Q2 2026. Related: U.S. and Japan rush to rescue the yen, but one market won't flinch Robinhood posted $1.31 billion in revenue and $0.62 in earnings per share (EPS), beating Wall Street estimates of $1.26 billion in revenue and $0.41 in EPS. Coinbase posted $1.22 billion in revenue, short of the estimated figure of $1.29 billion to $1.31 billion. However, it generated a negative EPS of $1.36, as compared to the range between -$0.42 and $0.14. Strategy generated $122.4 million in revenue and a negative EPS of $24.45, missing the estimates of $122.91 million and $2.19. As more crypto companies report earnings this week, here is what Wall Street expects. Cathie Wood trims Ethereum exposure on 11th anniversary U.S. Treasury attacks Iran's Hormuz 'extortion' network JPMorgan issues blunt warning on crypto's future Circle Internet Group (NYSE: CRCL) is a major crypto company that is best known for USDC, its U.S. dollar-pegged stablecoin. Last week, it announced that it had received a limited-purpose trust charter from the New York Department of Financial Services, allowing its Circle New York Trust to oversee USDC reserves and provide institutional digital asset custody services. The company will report the financial results for Q2 2026 on Aug. 5. As per TradingView, Wall Street expects Circle to post $713.70 million in revenue and $0.16 in EPS. Ahead of the earnings, Morgan Stanley slashed the price target on the Circle stock by 64% from $106 to $38 and granted it an Underweight rating, citing slowing USDC adoption and weaker reserve income prospects. Following the downgrade, the Circle stock fell more than 4.5% to trade at $59.67 at press time. Related: Morgan Stanley downgrades Circle, slashes price target by 64% Founded by billionaire investor Michael Novogratz, Galaxy Digital (Nasdaq: GLXY) is a financial services and infrastructure company focused on digital assets. Last week, the company announced the acquisition of around 500 acres in McGregor, Texas, for its second major artificial intelligence (AI) and high-performance computing (HPC) campus in the state. Galaxy Digital will report the financial results for Q2 2026 on Aug. 5. As per TradingView, Wall Street expects the company to post $9.63 billion in revenue and a negative EPS of $0.40. The stock was trading at $21.82 at press time, up 3.8% in a day. MARA Holdings (Nasdaq: MARA) is the world's largest publicly listed Bitcoin (BTC) mining company. The company revealed in March that it sold 15,133 BCTC for approximately $1.1 billion amid the price slump. The company will report the financial results for Q2 2026 on Aug. 6. As per TradingView, Wall Street expects MARA to post $209.44 million in revenue and $0.17 in EPS. The stock was trading at $11.78 at press time, up 4% in a day. Related: Major crypto exchange eyes IPO amid market slump This story was originally published by TheStreet on Aug 3, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.

Wall Street just lowered its price forecasts for Coinbase stock. The exchange missed earnings expectations for the third quarter in a row. Almost no analyst changed their advice, though. Most still say buy. A price target is where an analyst expects a stock to trade in 12 months. Several firms cut theirs this week. Their ratings stayed exactly where they were. Coinbase lost $359.5 million in the three months to June 30. That works out to $1.36 per share. Analysts had penciled in a loss of just 17 cents. So the gap was wide. Revenue reached $1.22 billion. Analysts wanted about $1.29 billion. A year earlier the figure was $1.5 billion. The damage started with trading. Customers traded 24% less than in the first quarter, Citizens said. Price swings were the smallest in years, so fewer people bought or sold. COIN shares then slid to a third straight quarterly loss. Subscriptions did not rescue the quarter either. That unit brought in $555 million, below the $594 million analysts wanted. Benchmark cut its target to $230 from $270. It kept a Buy rating anyway. Needham moved to $177. Rosenblatt moved to $200. Baird moved to $130. All three called the slump temporary rather than permanent. Mizuho landed at $155 and stayed neutral. Barclays was the one loud bear. It rates the stock Underweight, which means sell, and set a $95 target. Two firms did not flinch. Bernstein kept its $330 target. Citizens kept $325. Citizens gave a simple reason. Coinbase spent less than it had promised to spend. Job cuts made in May started to pay off. The pattern began before the results landed. Citi slashed its target by 41% last week and still told clients to buy. The bulls are not betting on trading fees. They are betting on everything else. Coinbase handled a record 10.3% of all crypto trading. Its prediction market revenue doubled in three months. Paid Coinbase One memberships hit an all-time high. The company now sells perpetual futures and stocks too. It calls the plan an "everything exchange." One piece is running late. Citizens said new USD Coin (USDC) features arrived later than planned. Banks have also flagged pressure on USDC economics. Circle's leadership argues that stablecoins outgrow crypto trading as payments spread. Coinbase needs that to happen quickly. COIN traded near $151.24 on Friday, down 2.41%. The average analyst target sits near $229.74. That gap is a lot of faith. Read the Original story 3 Earnings Misses Later, Wall Street Will Not Give Up on Coinbase Stock by Lockridge Okoth at beincrypto.com

Coinbase (NASDAQ: COIN) captured a record 10.3% share of global crypto trading volume in the second quarter of 2026, its third straight all-time high. The company also reported a $359.5 million net loss Thursday afternoon, its third consecutive quarterly loss. Industry spot trading volumes fell more than 20% during the quarter, according to the company, and Coinbase's revenue fell with them -- to $1.22 billion, down from $1.5 billion in the year-ago period. Shares, which closed Thursday at $163.58, slipped about 5% in after-hours trading following the report -- and they remain far below their 52-week high of $402.16. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » The share gains aren't the whole strategy, either. Transaction revenue came to $599 million in the quarter, while subscription and services revenue reached $555 million -- 48% of net revenue, up from 29% at the end of 2024. That mix shift matters because subscription dollars don't disappear when trading slows, cushioning the swings that come with crypto's cycles. And the subscription side keeps growing. The company said paid membership in its Coinbase One program reached an all-time high of more than 1 million during the quarter. The losses, meanwhile, are moving in the right direction. Coinbase lost $666.7 million in the fourth quarter of 2025 and $394.1 million in the first quarter of 2026, so the $359.5 million second-quarter loss marks two straight quarters of narrowing. Measured against that late-2025 peak, the quarterly loss has nearly been cut in half. Even more, the company generated positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $207.8 million, its 14th consecutive quarter in positive territory. Management also reduced and narrowed its full-year adjusted expense guidance. So is this a durable franchise or a fixed-cost problem? The evidence from the quarter arguably leans toward the franchise. A company that takes share through a downturn is positioned to earn far more when activity returns. And the narrowing losses suggest the cost base is being sized for the market Coinbase actually faces, not the one it enjoyed in better years. Of course, the risk is the other branch. If crypto volumes stay depressed for years, a record share of a smaller market still means smaller revenue, and the losses may take a long time to close entirely. Until volumes recover, the number to watch is whether the loss keeps narrowing each quarter. Three record quarters of market share say the franchise is intact. The income statement just hasn't caught up yet. Before you buy stock in Coinbase Global, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coinbase Global wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $394,601!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,197,093!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of July 31, 2026. Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy. Coinbase Just Took a Record 10.3% of Global Crypto Trading. It Still Posted Its Third Straight Quarterly Loss. was originally published by The Motley Fool