Revenue from cryptocurrency trading at eToro accounted for up to 91% of total revenue in Q2 this year, reaching 1.91 billion USD.
In Q2, eToro reported total revenue of 2.09 billion USD, mainly thanks to the digital asset trading segment, although the company also reported a net loss of 8.4 million USD from cryptocurrency derivatives contracts.
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Cryptocurrency trading accounted for a large share of eToro's revenue in Q2, reaching 91%.
The company reported a net loss of 8.4 million USD from the cryptocurrency derivatives segment in the same period.
eToro is expanding its trading product by tokenizing US stocks on the Ethereum blockchain.
How is eToro's cryptocurrency trading revenue in Q2?
eToro achieved revenue of 1.91 billion USD from trading cryptocurrency assets in Q2, accounting for 91% of the company's total revenue of 2.09 billion USD.
This result shows that cryptocurrency remains a key factor driving eToro's revenue, although the revenue share from this segment has slightly decreased from 93% in Q1. The shift of part of the revenue to other segments indicates that revenue diversification is taking place.
The growth of revenue from cryptocurrency reflects the increasing investment and trading trends, significantly contributing to the exchange's financial results in a volatile market.
Why did eToro report a loss in the cryptocurrency derivatives segment?
Despite high revenue, eToro still suffered a net loss of 8.4 million USD from cryptocurrency derivatives trading in Q2.
This loss indicates high risks and strong volatility in the cryptocurrency derivatives market, requiring tighter risk management. The derivatives segment often has high leverage, making it prone to significant fluctuations leading to short-term losses.
The recognition of losses alongside revenue still shows that the company maintains its strategy to develop this segment to leverage long-term potential and transform cryptocurrency financial products.
How is eToro expanding its products to diversify its revenue?
eToro has announced plans to tokenize US stocks on the Ethereum blockchain to supplement its service for trading traditional assets.
This expansion helps eToro not only grow based on pure cryptocurrency but also increase utility, offering a diverse range of products for customers interested in traditional assets in digital form.
The company's listing on Nasdaq since May this year at an issuance price of 52 USD per share has facilitated financial conditions for expanding product investments and improving revenue structure.
"The project of tokenizing stocks on the blockchain is an important step to enhance user experience and expand the digital investment portfolio."
eToro spokesperson, 2024
Frequently Asked Questions
Is eToro's revenue from cryptocurrency increasing or decreasing compared to the previous quarter?
The share of cryptocurrency revenue decreased slightly from 93% to 91%, however, total revenue in Q2 still maintained a high level.
Does eToro make a profit or loss when trading cryptocurrency derivatives?
In Q2, eToro reported a net loss of 8.4 million USD from its cryptocurrency derivatives segment due to volatility and risks in this market.
What does the tokenization of US stocks on the blockchain do for eToro?
Helps diversify products, expand digital trading services, and attract more investors interested in traditional assets.
How does eToro's current stock price compare to when it was listed on Nasdaq?
The stock price is currently around 50.7 USD, down 8.2% from the issuance price of 52 USD in May 2024.
Source: https://tintucbitcoin.com/doanh-thu-tien-dien-tu-etoro-q2/
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