Coinbase has reported impressive financial results for the first quarter of 2024, exceeding expectations and demonstrating its strong market position as a global leader.
Substantial turnover growth
The company reported revenue of $1.6 billion, up 72% from the previous quarter. Net income was $1.18 billion, or $4.40 per share, exceeding analyst expectations.
Consumer transaction revenue doubled to $935.2 million, while trading volume increased more than 93% to $56 billion. Institutional trading saw even greater growth, with revenues rising 133% to $85.4 million, while volume more than doubled to $256 billion. Bitcoin accounted for a third of this activity.
Impact of new accounting rules
Coinbase’s impressive quarterly performance was fueled in part by a one-time gain of $737 million due to new accounting rules that allow crypto companies to record price increases on their balance sheets. The company’s EBITDA reached $1 billion in the first quarter, surpassing the previous year’s total.
Progress towards strategic priorities
In a letter to shareholders, Coinbase highlighted progress toward its 2024 priorities, including driving revenue, utility and regulatory clarity.
Base, the company’s Ethereum layer-2 chain, generated $56.1 million in revenue, while its stablecoin USDC saw a 30% growth in market capitalization. Despite these successes, Coinbase shares fell slightly after the announcement, after initially rising nearly 9%.
Outlook
As Coinbase continues to grow, the company’s success in Q1 serves as a positive indicator of its future trajectory. With its focus on strategic priorities and innovative technologies, Coinbase is well positioned to navigate the changing landscape of the cryptocurrency market.
Source: https://bitcoinmagazine.nl/nieuws/coinbase-maakt-een-winst-van-meer-dan-1-miljard-in-q1-2024
