Coin Edition -
- Coinbase (NASDAQ:COIN) reported a total revenue of $1.64 billion with a net income of $1.18 billion.
- The company also reported consumer transaction revenue of $935 million.
- Subscription and service revenue contributed $511 million for Q1, 2024.
Coinbase, the largest digital asset trading platform in the United States by trading volume, reported net income of $1.18 billion, or $4.40 per share, compared to a year-ago loss of $78.9 million, or 34 cents a share.
On the other hand, the company reported its first profit in two years in February, when the price of Bitcoin (BTC) started to climb. The notable 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.
In terms of revenue, Coinbase saw a substantial surge in consumer transaction revenue, reaching $935 million for the quarter, more than doubling from the same period last year, according to CNBC. Total transaction revenue nearly tripled to $1.08 billion, with subscription and services revenue contributing $511 million for the quarter.
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.
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