Coinbase’s first-quarter revenue doubles to $1.58 billion

On By Vaseline

Cryptocurrency exchange Coinbase reported better-than-expected profits in the first quarter of 2024 as crypto assets and broader market sentiment soared. The largest crypto exchange in the United States today announced its first quarter results, with figures that exceeded analysts’ most expected numbers.

According to the release, Coinbase’s revenues more than doubled to $1.58 billion, above the $1.32 figure predicted by most analysts. Transaction revenues nearly doubled from last quarter at more than $1 billion as the exchange saw new flows from retail and institutional clients.

While most private customers Contributing to this figure, institutional investors have increased trading volumes on the platform. Net income came in at $4.40 per share at $1.17 billion, while positive numbers dominated the quarter. Last year, net profit plummeted to a $79 million loss due to the broader down market trend ahead of spot Bitcoin ETF expectations.

Transaction revenues increase

The highs of the past three months have sent the stock up above 30% this year. The platform’s mobile app downloads and other factors saw an increase. Coinbase posted more than $300 million in transaction revenue last month.

These bullish factors have led analysts to make forecasts for the second quarter, even though the cryptocurrency market has seen a dip in sentiment. With sentiment waning post-halving, analysts believe that cryptocurrency gains may not be as high as they were in the first three months of the year.

Coinbase’s improved earnings follow those of other crypto stocks in the United States. Companies like Meta and Alphabet are tech stocks with similar earnings and rising profits.

Bitcoin price key to Coinbase earnings

The price of Bitcoin and other crypto assets played a major role in the rally in Coinbase stock. Anticipation of spot Bitcoin ETFs in the United States pushed the price of BTC above $44,000 in December.

The Jan. 11 approval sparked a massive inflow, sending the price to a new all-time high above $72,000. This led to increased institutional activity in the cryptocurrency market. Centralized crypto exchanges like Coinbase were at an advantage as on-chain transactions in decentralized finance (DeFi) soared.

Also read: Bitcoin-Focused Wasabi Wallet Developer zkSNACKs Leaves the US