Coinbase Q1 Revenue Doubles to $1.58 Billion
Cryptocurrency exchange Coinbase reported better-than-expected earnings for the first quarter of 2024 as crypto assets and broader market sentiment picked up. The largest crypto exchange in the United States announced its first quarter results today, and the numbers beat analysts’ top estimates.
According to the statement, Coinbase’s revenues more than doubled to $1.58 billion, above the $1.32 figures predicted by most analysts. Revenues from transactions nearly doubled from last quarter to over $1 billion as the exchange saw new flows from retail and institutional customers.
Most of the time retail customers Contributing to this figure, institutional investors increased their trading volumes on the platform. Net income reached $1.17 billion at $4.40 per share, with positive numbers dominating the quarter. Last year, net income fell to a loss of $79 million, following the market’s broader bearish trend ahead of the prospect of spot Bitcoin ETFs.
Transaction Revenue Is Increasing
The highs in the last three months have pushed the stock up over 30% this year. The platform saw an increase in mobile app downloads and other factors. Coinbase recorded over $300 million in transaction revenue last month.
These bullish factors led analysts to make predictions for the second quarter, but a bearish trend was observed in the cryptocurrency market. As post-halving sentiment declines, analysts think crypto gains may not be as high as the first three months of the year.
Coinbase’s rising gains follow other crypto stocks in the US. Like companies Meta and Alphabet are tech stocks that have posted rising profits with similar gains.
Bitcoin Price Key to Coinbase Earnings
Price Bitcoin and other crypto assets contributed to the rise in Coinbase shares. The prospect of spot Bitcoin ETFs in the US pushed the BTC price above $44,000 in December.
The confirmation on January 11 led to massive inflows that pushed the price above $72,000, an all-time high. This has led to increased institutional activity in the cryptocurrency market. While on-chain transactions were increasing in decentralized finance (DeFi), centralized crypto exchanges such as Coinbase were at an advantage.
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