Cryptocurrency exchange Coinbase (COIN) cleared revenue views but missed earnings estimates for its Q2 report late Thursday. Coinbase stock retreated Friday as bitcoin fell after climbing in early trade. Elsewhere, MicroStrategy (MSTR) and bitcoin miner Marathon Digital (MARA) also weakend.

Coinbase reported earnings of 14 cents per share, a significant improvement from the previous year's loss of 42 cents per share. Revenue surged by 104% year-over-year to $1.449 billion, surpassing expectations of $1.398 billion. However, FactSet had anticipated earnings of 95 cents per share.

Crypto activity on the exchange increased as prices rebounded, with total trading volume rising 146% to $226 billion, meeting estimates. Institutional trading volume grew 142% to $189 billion, exceeding expectations of $186.4 billion, while retail trading volume increased 164% to $37 billion, slightly below forecasts of $38.6 billion. Transaction revenue grew 138% to $780.9 million, driven by a 130% rise in consumer transaction revenue, though it fell short of the predicted 141% growth.

Subscription and services revenue reached $599 million, beating analysts' expectations of $566 million. Custodial fee revenue increased to $34.5 million from $17 million the previous year, although it missed the anticipated $39 million. Coinbase serves as the custodian for many of the U.S. spot bitcoin ETFs and spot ethereum ETFs.

Coinbase forecasts Q3 subscription and services revenue to be between $530 million and $600 million, up from $334 million last year, with FactSet projecting $575 million for Q3.

Paul Marino, chief revenue officer at GraniteShares, expressed long-term bullishness on Coinbase, citing increasing interest and institutional support for cryptocurrencies. He highlighted the significance of the spot ether ETFs starting to trade and the potential growth of cryptocurrencies as blockchain technology use expands, benefiting Coinbase as a leading trading platform.

Coinbase's stock fell 3.9% on Friday, despite an early trade increase of 1.8%, and a 5.2% drop on Thursday. The stock has risen 17.6% this year but remains below its