The exchange reported a quarterly profit of $273.4 million.
It generated a transaction revenue of $529 million, a surge of 84 percent.
California-headquartered Coinbase (Nasdaq: COIN) has reported a profit of $273.4 million or $1.04 per share in the fourth quarter of 2023, beating an expected loss of expected loss of 1 cent per share, according to LSEG data. It was the first quarterly profit of the crypto exchange since 2021.
For comparison, the exchange 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 solid numbers as the value of publicly listed shares of the crypto exchange jumped 14.2 percent in after-hours trading. Coinbase shares are still trading at a heavy discount from its listing price in April 2021.
Revenue Receives a Boost
The profit for the three months between October and December was generated on revenue of $953.8 million, which also exceeded the analysts’ expectation of $826.1 million. The figure elevated 41 percent quarter-over-quarter.
Furthermore, the transaction volume surged 84 percent quarter-over-quarter to $529 million, primarily driven by the volatility and demand for cryptocurrencies. Revenue from its subscription services reached $375.4 million, an increase from the previous quarter’s $826.1 million.
The quarterly demand surged when the market anticipated the approval of Bitcoin exchange-traded funds (ETFs) in the United States. The securities market regulator approved the much-awaited instrument in January.
“ETFs have just been net positive for the industry and additive to Coinbase,” said Alesia Haas, the Chief Financial Officer at Coinbase.
Solid Forecasts
The crypto exchange is expected to generate better results in the ongoing first quarter 2024. It has already generated about $320 million in transaction revenue until February 13. From the subscription and services unit, the exchange is expecting to generate between $410 million and $480 million.
Meanwhile, the legal battle between Coinbase and the Securities and Exchange Commission is ongoing. The exchange is now strengthening its presence in the overseas markets, particularly in Europe, with multiple new licenses.
“Coinbase has always taken a long-term approach focussing on building in a compliant manner, even when it wasn’t the popular choice. Many of our competitors cut corners and broke laws to get big fast, and we’ve seen how that strategy played out,” Coinbase’s CEO, Brian Armstrong, said during the earnings call.
California-headquartered Coinbase (Nasdaq: COIN) has reported a profit of $273.4 million or $1.04 per share in the fourth quarter of 2023, beating an expected loss of expected loss of 1 cent per share, according to LSEG data. It was the first quarterly profit of the crypto exchange since 2021.
For comparison, the exchange 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 solid numbers as the value of publicly listed shares of the crypto exchange jumped 14.2 percent in after-hours trading. Coinbase shares are still trading at a heavy discount from its listing price in April 2021.
Revenue Receives a Boost
The profit for the three months between October and December was generated on revenue of $953.8 million, which also exceeded the analysts’ expectation of $826.1 million. The figure elevated 41 percent quarter-over-quarter.
Furthermore, the transaction volume surged 84 percent quarter-over-quarter to $529 million, primarily driven by the volatility and demand for cryptocurrencies. Revenue from its subscription services reached $375.4 million, an increase from the previous quarter’s $826.1 million.
The quarterly demand surged when the market anticipated the approval of Bitcoin exchange-traded funds (ETFs) in the United States. The securities market regulator approved the much-awaited instrument in January.
“ETFs have just been net positive for the industry and additive to Coinbase,” said Alesia Haas, the Chief Financial Officer at Coinbase.
Solid Forecasts
The crypto exchange is expected to generate better results in the ongoing first quarter 2024. It has already generated about $320 million in transaction revenue until February 13. From the subscription and services unit, the exchange is expecting to generate between $410 million and $480 million.
Meanwhile, the legal battle between Coinbase and the Securities and Exchange Commission is ongoing. The exchange is now strengthening its presence in the overseas markets, particularly in Europe, with multiple new licenses.
“Coinbase has always taken a long-term approach focussing on building in a compliant manner, even when it wasn’t the popular choice. Many of our competitors cut corners and broke laws to get big fast, and we’ve seen how that strategy played out,” Coinbase’s CEO, Brian Armstrong, said during the earnings call.
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
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#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
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#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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