Self-custody wallet company Exodus Movement has reported an 80% year-over-year jump in second-quarter revenue to $22.3 million. However, the firm’s cost of revenue also increased and it posted a quarterly loss of nearly $10 million, whereas in the prior-year quarter it profited $1.9 million.
“Our strong Q2 performance reflects our leadership in product innovation and the overall growth of the digital asset market,” JP Richardson, CEO and co-founder of Exodus, said in a statement.
The company, which has been in business for nearly a decade, launched one of the first digital wallets for bitcoin. It has since expanded to over 50 networks in addition to adding NFT and staking support for networks like Ethereum and Solana.
Chief Financial Officer James Gernetzke noted the firm has a “long runway for growth” and plans to make strategic investments in its product. He noted the free software company’s B2B strategy is growing, which is the source of its revenues.
Exodus Movement primarily makes money providing exchange services, including aggregation ($19.9 million in revenue), fiat onboarding ($1 million), staking ($500,000) and consulting ($500,000). Exodus processed over $1 billion in crypto transaction volume for exchanges in the second quarter.
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Monthly active users also nudged up to 1.5 million this quarter from 1.2 million in the same period last year.
Exodus’ treasury is heavily weighted towards digital assets. It holds about $70.7 million in cash and cash equivalents, including stablecoins and Treasurys, and $195.5 million in digital assets, including $121.3 million in bitcoin and Ethereum tokens.
This is Exodus’ first quarterly financial statement since its stock (ticker: EXOD) was “uplisted” on NYSE American, a division of the New York Stock Exchange, in May. In its preliminary review, Exodus reported $29.1 million in revenue and 1.69 million in monthly active users in the first quarter of 2024.
Exodus’s stock, initially called EXIT, first started trading in 2021 when the company raised $60 million by listing on the digital securities division of Overstock.com, tZero. Its common stock was tokenized by Securitize on the proof-of-stake Algorand network, making it one of the first and only tokenized corporate stocks.
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