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California-headquartered Coinbase (Nasdaq: COIN) reported profit of $273.4 million, or $1.04 per share, in the fourth quarter of 2023, beating an expected loss of 1 cent per share, according to LSEG data. This is the crypto exchange's first quarterly profit since 2021.
For comparison, the stock market generated a loss of $2 million in the third quarter of 2023 and a loss of $557 million in the last three months of 2022, showing a massive recovery.
The market quickly reacted to the strong numbers, with the value of the crypto exchange's publicly traded shares jumping 14.2% after hours. Coinbase shares are still trading at a steep discount to their April 2021 listing price.
Revenue gets a boost
Profit for the three months between October and December was generated on revenue of $953.8 million, which also beat analysts' expectations of $826.1 million. This figure jumped 41 percent quarter over quarter.
Additionally, trading volume jumped 84% quarter-over-quarter to $529 million, primarily due to volatility and demand for cryptocurrencies. Revenue from its subscription services was $375.4 million, up from $826.1 million in the previous quarter.
Quarterly demand increased as the market anticipated the approval of Bitcoin exchange-traded funds (ETFs) in the United States. The securities market regulator approved the highly anticipated instrument in January.
“ETFs have just been net positive for the industry and add to Coinbase,” said Alesia Haas, Coinbase CFO.
Strong forecasts
The crypto exchange is expected to generate better results during the first quarter of 2024. It has already generated around $320 million in trading revenue until February 13. From the subscription and services unit, the exchange is expected to generate between $410 million and $480 million.
Meanwhile, the legal battle between Coinbase and the Securities and Exchange Commission continues. The exchange is now strengthening its presence in foreign markets, particularly in Europe, with several new licenses.
“Coinbase has always taken a long-term approach focused on building compliantly, even if it wasn't the popular choice. Many of our competitors took shortcuts and broke laws to get big quickly, and we saw how that strategy played out,” Coinbase CEO Brian Armstrong said on the earnings call.
California-headquartered Coinbase (Nasdaq: COIN) reported profit of $273.4 million, or $1.04 per share, in the fourth quarter of 2023, beating an expected loss of 1 cent per share, according to LSEG data. This is the crypto exchange's first quarterly profit since 2021.
For comparison, the stock market generated a loss of $2 million in the third quarter of 2023 and a loss of $557 million in the last three months of 2022, showing a massive recovery.
The market quickly reacted to the strong numbers, with the value of the crypto exchange's publicly traded shares jumping 14.2% after hours. Coinbase shares are still trading at a steep discount to their April 2021 listing price.
Revenue gets a boost
Profit for the three months between October and December was generated on revenue of $953.8 million, which also beat analysts' expectations of $826.1 million. This figure jumped 41 percent quarter over quarter.
Additionally, trading volume jumped 84% quarter-over-quarter to $529 million, primarily due to volatility and demand for cryptocurrencies. Revenue from its subscription services was $375.4 million, up from $826.1 million in the previous quarter.
Quarterly demand increased as the market anticipated the approval of Bitcoin exchange-traded funds (ETFs) in the United States. The securities market regulator approved the highly anticipated instrument in January.
“ETFs have just been net positive for the industry and add to Coinbase,” said Alesia Haas, Coinbase CFO.
Strong forecasts
The crypto exchange is expected to generate better results during the first quarter of 2024. It has already generated around $320 million in trading revenue until February 13. From the subscription and services unit, the exchange is expected to generate between $410 million and $480 million.
Meanwhile, the legal battle between Coinbase and the Securities and Exchange Commission continues. The exchange is now strengthening its presence in foreign markets, particularly in Europe, with several new licenses.
“Coinbase has always taken a long-term approach focused on building compliantly, even if it wasn't the popular choice. Many of our competitors took shortcuts and broke laws to get big quickly, and we saw how that strategy played out,” Coinbase CEO Brian Armstrong said on the earnings call.
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