Coinbase beat fourth-quarter expectations, with trading revenue rising to $529 million.
Coinbase said in a statement that fourth-quarter revenue rose 41% from the previous quarter to $953.8 million, beating analyst estimates.
Sales in the fourth quarter of 2023 also increased by about 50% compared to the same period last year. Analysts expected quarterly revenue of $826.1 million, according to FactSet estimates cited by Yahoo Finance.
“In 2023, we saw our operational rigor paying off,” Coinbase said in its earnings statement. “We achieved our financial goals, launched new innovative products, strengthened our competitive position, and redoubled our efforts to create momentum for a viable regulatory framework for cryptocurrencies in the United States.”
Coinbase also reported net income of $273 million for the quarter, compared to a loss of $557 million in the same period last year.
The company’s shares rose more than 6% to $177.44 in after-hours trading as of 4:30 p.m. ET, according to Yahoo Finance. Coinbase stock is up more than 150% in the past year.
Trading revenue from Coinbase
The cryptocurrency trading platform also generated $529.3 million in trading revenue during the quarter. This is an increase from $288.6 million in the third quarter.
“Q4 trading revenue increased 83% Q/Q to $529 million, primarily driven by high levels of volatility and cryptocurrency asset prices,” the company also said in a statement. “We have seen a sharp increase in cryptocurrency asset volatility. This increase has been primarily driven by a variety of factors, including excitement over the approval of a Bitcoin spot ETF and widespread expectations of improving macroeconomic conditions in 2024.”
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About the author
RT Watson is a senior reporter at The Block, covering a variety of topics including US-based companies, blockchain games, NFTs, and more. He previously covered entertainment for The Wall Street Journal and has covered companies including Disney, Netflix, and Warner Bros. and the creator economy, with a primary focus on technological innovation across media. Previously, she covered corporate, economic and political news in Brazil at Bloomberg. She interviewed a wide range of figures for RT, including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers, and convicted criminals. She holds a Master’s degree in Digital Sociology.
