Coinbase staff got a big stock pay bump, and Trump might make them richer
Bitcoin has been booming as of late, especially as the likelihood of Donald Trump regaining the presidency grows. Although Coinbase CEO Brian Armstrong remained neutral in his fintech's Q2 earnings call yesterday, the company has been bathing in the benefits, and making sure to share the love with its employees.
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Coinbase reported $1.4bn in revenue last quarter. This was down from $1.6bn the year before but ahead of analyst expectations. While revenues fell, Coinbase's headcount grew... just. An accompanying 10-Q form said the firm's headcount rose 2% to 3,486.
Coinbase could see greater headcount growth in the coming months. Armstrong said "we do plan to increase hiring through the back half of 2024," predominantly within its consumer and international platforms.
Personnel related expenses rose by an ever greater percentage, according to an 8-K filing. In 'technology and development', that expense rose by 10% year-on-year. In 'general and administrative', it rose by 8%. Sales and marketing actually fell 1% this quarter, but the function is still up 3% for H1 year-on-year.
Coinbase paid its staff an average of $121.5k this quarter alone, tracking above the previous annual average pay of $424k. It attributes this rise to "2023 annual employee equity awards being granted at a lower stock price as compared to the 2024 annual employee equity rewards." Total stock-based compensation was up 9% in Q2 year-on-year.
Looking ahead, Armstrong said the firm is "increasingly optimistic" about the next administration, regardless of party, to support the growth of crypto, but might he be secretly rooting for Trump? The former and possibly future president appeared at Bitcoin Nashville this week and said, "if bitcoin is going to the moon, I want America to be the nation that leads the way." Should he stay true to his word, crypto (and Coinbase stock) would likely continue to rise.
Of course, Trump hasn't always been a diehard, having once called crypto "a scam." Is he really committed? Coinbase will have to keep its ear to the ground.
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