eToro’s Q2 Crypto Revenue Falls 30%, Plans TradeZero Deal to Expand US Business
Summary
- eToro said its second-quarter crypto-related revenue fell about 30% from a year earlier.
- The number of crypto trades in July fell 73% from a year earlier, while investment volume dropped 50%.
- eToro announced plans to acquire TradeZero and acquire Zengo as it expands its US business.
Forecast Trend Report by Period
Global investment platform eToro’s cryptocurrency-related revenue fell about 30% in the second quarter from a year earlier. The company also plans to acquire online brokerage TradeZero as part of its US expansion.
Cointelegraph reported on August 11 that eToro’s total second-quarter revenue declined to $1.59 billion from $2 billion a year earlier.
Crypto-related revenue totaled $1.34 billion, down about 30% from $1.9 billion in the same period last year. Net income from the crypto segment was $19.7 million, while companywide net income was $53.4 million.
Crypto trading activity on the platform also slowed. The number of crypto trades in July fell 73% from a year earlier to 1.4 million, and investment volume dropped 50%.
Separately, eToro plans to acquire TradeZero as part of its push to expand in the US. TradeZero generated about $80 million in revenue in the 12 months through the end of June and posted a gross margin of 81%.
eToro has recently been expanding into a multi-asset platform that includes cryptocurrencies. In April, it also announced plans to acquire self-custodial crypto wallet company Zengo.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.