Coinbase Staff Reap Big Pay Bumps as Trump's Presidential Hopes May Further Enrich Crypto Market
Bitcoin has seen a notable increase in value, coinciding with rising speculation about Donald Trump's potential return to the presidency. While Coinbase CEO Brian Armstrong maintained a neutral stance during the company's Q2 earnings call, Coinbase itself has profited from the cryptocurrency's surge, passing on some of these gains to its employees.
Despite a slight decrease in revenue to $1.4 billion from $1.6 billion the previous year, Coinbase exceeded analyst expectations. Although revenues dipped, the company reported a marginal 2% increase in headcount, bringing its total to 3,486 employees, according to its 10-Q filing.
Armstrong has expressed plans to ramp up hiring in the latter half of 2024, focusing on consumer and international platforms, which could see further headcount growth. According to an 8-K filing, expenses related to personnel have climbed significantly, with a 10% increase in technology and development costs and an 8% rise in general and administrative expenses. Meanwhile, sales and marketing expenses saw a slight decrease of 1% this quarter, although they are still up 3% for the first half of the year on a year-on-year basis.
Coinbase has also increased its average employee pay to $121.5k for this quarter, a significant rise from the annual average of $424k. This increase is attributed to the lower stock price at which 2023 annual employee equity awards were granted compared to the 2024 awards. Overall, stock-based compensation rose by 9% year-on-year for Q2.
Looking forward, Armstrong remains "increasingly optimistic" about the next U.S. administration's support for the cryptocurrency sector, irrespective of the party. However, with Trump’s recent appearance at Bitcoin Nashville, where he expressed a desire for America to lead in bitcoin if it "goes to the moon," speculation is rife about his potential impact on the sector. Despite his previous criticism of cryptocurrencies as "a scam," his current stance could significantly influence the market and Coinbase's fortunes.
Coinbase is closely monitoring political developments, aware that the next administration's stance on cryptocurrencies could impact its business significantly.
AP Photo/Alex Brandon