As cryptocurrency rise boosts trading volume, Coinbase posts massive Q4 earnings

February 20, 2024

By Anjali Kochhar

As a result of the spot-Bitcoin exchange-traded fund’s launch, which increased trading activity on the cryptocurrency platform, Coinbase revealed fourth-quarter results last week that significantly exceeded Wall Street projections.

According to the Coinbase Global Inc (NASDAQ:COIN) was up more than 7% in after-hours trading following the report.

Wall Street had predicted that Coinbase would make $0.01 per share on $818.4 million in revenue, but instead it declared earnings of $1.04 per diluted share on $953.8 million.

The Bitcoin exchange reported a rise in trade volume to $154 billion from $145 billion during the same period last year, which is why the top line outperformed expectations.

“This can be said that the increases were influenced by several factors, primarily the excitement surrounding Bitcoin spot ETF approvals and the widespread anticipation of improved macroeconomic conditions in 2024. These factors collectively contributed to a surge in ‘risk-on’ activity across the capital markets,” as stated in the earnings report released last Thursday.

In Q4, total transaction revenue surged by 64% year-on-year to reach $529.3M, while subscription and services revenue saw a 33% increase, totaling $375.4M.

Operating expenses in Q4 decreased to $838.2M from $1.18B in the previous year.

Coinbase has experienced a boost in investor sentiment in recent months, attributed to the rise in cryptocurrency prices.

JPMorgan noted in a Wednesday update that with cryptocurrency prices continuing to rise, activity levels and Coinbase’s earnings potential are not just maintaining but also improving. This assessment follows the firm’s upgrade of the stock rating from underweight to neutral.

About the author

Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.

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