- Coinbase, the largest digital asset trading platform in the United States, reports a net income of $1.18 billion for Q1, 2024.
- The company’s consumer transaction revenue more than doubled from the same period last year, reaching $935 million.
- Subscription and service revenue contributed $511 million, with total transaction revenue nearly tripling to $1.08 billion.
Coinbase reports a staggering Q1 revenue of $1.64 billion, with a net income of $1.18 billion, marking a significant milestone in the crypto market.
Coinbase Reports Record-Breaking Revenue
Coinbase, the leading digital asset trading platform in the United States, reported a total revenue of $1.64 billion for Q1, 2024. The company’s net income reached $1.18 billion, or $4.40 per share, compared to a year-ago loss of $78.9 million, or 34 cents a share. This significant increase in net income was partly attributed to a $650 million mark-to-market gain on crypto assets held for investment, following the adoption of updated accounting standards by the company.
Surge in Consumer Transaction Revenue
According to CNBC, the company saw a substantial surge in consumer transaction revenue, reaching $935 million for the quarter, more than doubling from the same period last year. Total transaction revenue nearly tripled to $1.08 billion, with subscription and services revenue contributing $511 million for the quarter.
Positive Market Reaction and Significant Milestones
Investors reacted positively to the news, with Coinbase shares climbing almost 9% on Thursday ahead of the report. Year-to-date, the stock has risen approximately 32%, building on a nearly fivefold increase in 2023. During the first quarter, the crypto market witnessed significant milestones, with Bitcoin reaching an all-time high above $73,000 in March, and Ethereum, the second-largest digital asset, undergoing its first major upgrade in over a year. The approval of new US spot bitcoin exchange-traded funds by the Securities and Exchange Commission (SEC) also attracted institutional investors, with many funds partnering with Coinbase as their custody partner. These funds collectively brought in more than $50 billion by the end of the first quarter.
Conclusion
The Q1, 2024 report from Coinbase highlights the growing strength of the crypto market, with the company’s record-breaking revenue and net income serving as testament to this growth. With Bitcoin and Ethereum reaching significant milestones, and the approval of new US spot bitcoin exchange-traded funds, the future outlook for the crypto market and Coinbase remains positive.
