SoFi Hits 388k Crypto Products But Q2 Net Revenue Slips to $1.2M

Digital financial services firm SoFi Technologies recently reported a cumulative total of 388,336 crypto products as of June 30. Despite the impressive number of accounts, the company managed just $1.183 million in net crypto transaction revenue for the second quarter. The earnings release showed $134 million in gross crypto transaction revenue offset by $133 million in transaction costs, leaving a very slim margin of about 0.88 percent on the gross line.

SoFi explained that it records crypto transactions on a gross basis because it acts as the principal. The company buys digital assets from third party liquidity providers or sells assets to them before transferring the funds to member accounts. Most of the money coming in flows right back out to cover the cost of the assets, leaving net revenue driven mostly by the fees collected on each order.

While net revenue is relatively small, it did grow sequentially from the first quarter when SoFi posted $852,000. That marks a 38.8 percent increase quarter over quarter, bringing the total for the first half of the year to $2 million. Traders should keep an eye on how these transaction volumes scale as consumer trading features continue to roll out.

It is important to note that the two reported figures measure different things. The account tally is a cumulative count since launch, while the revenue figure covers just the three months of the second quarter, meaning direct per user calculations are not yet possible.