If we do the research, you can get alpha!
Get exclusive reports and key insights on airdrops, NFTs, and more! Subscribe to Alpha Reports now and enjoy the game!
Go to Alpha Report
The leading U.S. cryptocurrency exchange said Thursday that its revenue soared to $1.6 billion in the first quarter of this year, with trading revenue doubling over the past three months.
Coinbase’s first quarter revenue was up significantly from $772 million in the same period last year. Net income of $1.6 billion, exceeding analyst expectations of $1.3 billion. The San Francisco-based company also reported earnings of $4.40 per share, well above Wall Street expectations of $0.90.
Coinbase’s trading revenue soared from $374 million a year ago to $1.1 billion in the first quarter, double the $523 million in trading revenue in the fourth quarter of last year.
Coinbase said in a letter to shareholders that its platform has seen “an increase in trading activity among customers acquired prior to 2023,” along with an increase in new users, including institutional traders.
Coinbase went green in the last quarter of last year. reported This compares to a loss of $557 million in the same quarter in 2022, with a profit of $273.4 million. A year ago, the company posted a quarterly loss of $79 million as the cryptocurrency market slumped in the wake of FTX.
The exchange said in February it had strengthened its balance sheet by reducing debt by $413 million and was in the business of helping customers earn interest. USD Coin (USDC) Stablecoins have helped companies achieve greater profits.
Interest in exchanges’ stablecoin services also increased this year. Coinbase said revenue from its cryptocurrency products hit $197 million this quarter, up 15% from the previous quarter. The shareholder letter added that USDC is the fastest-growing stablecoin in 2024.
stablecoin It is a digital token pegged to a stable asset (usually the dollar). Coinbase allows customers to earn interest on these cryptocurrencies. The company calls this blockchain rewards. Coinbase users staking cryptocurrency earned $151 million, more than double what it was a year ago.
After the rise in cryptocurrency prices Approved in January out of 11 Bitcoin exchange traded fund (ETF) spot It also helped Coinbase make money. that much bitcoin price It rebounded this year, hitting a new all-time high of $73,747 in March. At the start of the year, it was trading for just over $44,000.
Coinbase has partnered with most major asset managers that have discontinued Bitcoin ETFs to provide custody services. In fact, Coinbase said the ETF’s approval “opened a flywheel of customer engagement across (a) more robust product line.”
Shares of Coinbase rose 8% Thursday to $230 per share, according to Nasdaq data. However, the company’s stock price fell to about $224 per share in after-hours trading following the company’s earnings release.
Edited by Ryan Ozawa.
