Self-custody wallet company Exodus Movement reported second-quarter revenues of $22.3 million, up 80% year-over-year. However, the company’s cost of sales also increased, and its quarterly loss was nearly $10 million, compared to a profit of $1.9 million in the same quarter a year ago.
“Our strong second quarter results reflect our leadership in product innovation and the overall growth of the digital asset market,” JP Richardson, Exodus CEO and co-founder, said in a statement.
The company, which has been in business for nearly a decade, launched one of the first digital wallets for Bitcoin. Since then, it has expanded to over 50 networks, in addition to adding NFTs and staking support for networks like Ethereum and Solana.
Chief Financial Officer James Gernetsky said the company has a “long runway for growth” and plans to make strategic investments in its products. He noted that the free software company’s B2B strategy is growing and that this is a source of revenue.
Exodus Movement generates revenue primarily by providing trading services, including aggregation ($19.9 million in sales), fiat onboarding ($1 million in sales), staking ($500,000 in sales), and consulting ($500,000 in sales). Exodus processed over $1 billion in cryptocurrency trading volume on its exchange in Q2.
Monthly active users for the quarter also increased to 1.5 million, up from 1.2 million in the same period last year.
Exodus’ treasury is heavily weighted towards digital assets, with approximately $70.7 million in cash and cash equivalents, including stablecoins and government bonds, and $195.5 million in digital assets, including $121.3 million in Bitcoin and Ethereum tokens.
These are the first quarterly financial statements released since Exodus’ stock (ticker: EXOD) “listed” on the NYSE American, a division of the New York Stock Exchange, in May. Preliminary ReviewExodus reported $29.1 million in revenue and 1.69 million monthly active users in Q1 2024.
Exodus’ stock was originally called EXIT and first began trading in 2021 when the company raised $60 million through a listing on tZero, the digital securities division of Overstock.com. The common stock was tokenized on the proof-of-stake Algorand network by Securitize, making it one of the first and only tokenized corporate stocks.
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