Coinbase’s Q1 Revenue Skyrockets to $1.6 Billion Amid ETF Approvals: A 72% Surge Boosted by Crypto Market (COIN)

• Coinbase, the largest U.S. crypto exchange, has released its Q1 2024 earnings report, posting a total revenue of $1.6 billion, a 72% increase quarter on quarter.
• The performance has been driven by the rising crypto asset prices and the launch of spot Bitcoin ETFs in the U.S. which further improved inflows into the market.
• Coinbase’s net income reached $1.18 billion, $4.40 per share, translating to $1 billion in adjusted EBITDA in Q1.

Coinbase’s Q1 2024 earnings report shows a significant increase in revenue, driven by rising crypto asset prices and the launch of spot Bitcoin ETFs in the U.S.

Coinbase Earnings Surged in Q1

Coinbase’s net income reached $1.18 billion, $4.40 per share, translating to $1 billion in adjusted EBITDA in Q1. Comparatively, the adjusted EBITDA, which shows earnings before tax, depreciation, interest, and amortization, was $977.5 million in 2023. The earnings report also showed that Coinbase attributed its net income partly to $737 million in pre-tax unrealized gains on crypto assets. The firm ended the quarter with $7.1 billion in capital, including $1.1 billion in net cash raised through the sale of 2030 convertible notes.

Consumer and Institutional Transactions Increase

Consumer transaction revenue doubled to $935.2 million, and volume mirrored this, growing 93% to $56 billion. Institutional interest increased as well with transactions gaining revenue of $85 million, a 133% increase quarter on quarter. Meanwhile, the Coinbase Prime trading volume grew 105% to $256 billion, surpassing the U.S. spot market. Notably, Bitcoin accounted for a third of consumer and institutional transactions.

Coinbase’s Base Revenue Soars, Expenses Surge

Since its August launch, Base, Coinbase’s Ethereum layer 2 chain, has amassed $56.1 million in revenue. It has exhibited double the transaction volume compared to Ethereum, alongside an 800% surge in developer activity. Despite diversification with Base and USDC, the recent boom was due to favorable market conditions. Bitcoin’s price skyrocketed 57% to an all-time high of $73,000, fueled by over $50 billion entering 10 spot Bitcoin ETFs approved in January. Meanwhile, the company’s transaction expenses increased by 73% to $217 million. Due to increased trading volume, the company expects even higher costs in Q2, as high as $890 million.

Conclusion

Coinbase’s Q1 2024 earnings report shows a significant increase in revenue, driven by rising crypto asset prices and the launch of spot Bitcoin ETFs in the U.S. The company’s net income reached $1.18 billion, with consumer and institutional transactions also seeing a significant increase. Despite the surge in revenue, the company’s expenses also increased due to increased trading volume.