Coinbase reports $1.64 billion in revenue on Q1

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Crypto exchange Coinbase reported $1.64 billion in revenue for the first quarter, surpassing the initial expectations of $1.32 billion, as reported by CNBC.

The earnings per share stood at $4.40, which may not align directly with the average analyst estimate of $1.09 due to different accounting standards. Coinbase’s net income reached $1.18 billion, or $4.40 per share, marking a stark contrast to the previous year’s loss of $78.9 million, or a loss of 34 cents per share. This profit includes a $650 million mark-to-market gain on crypto assets, reflecting the company’s adoption of updated accounting standards.

Consumer transaction revenue hit $935 million, more than doubling from the previous year, while total transaction revenue nearly tripled to $1.07 billion. Subscription and services revenue also contributed with $511 million for the quarter. Despite trading 4% lower in extended trading, Coinbase shares have seen a 30% increase this year, following an almost fivefold surge in 2023.

The first quarter also witnessed Bitcoin reaching a new all-time high of over $73,000 in March, and Ethereum undergoing a significant upgrade. The influx of institutional investors, particularly with the SEC’s approval of US spot bitcoin ETFs, has also played a role in Coinbase’s performance.

By the end of the quarter, these funds had attracted over $50 billion, with many partnering with Coinbase for custody services. However, the company faces challenges, including a legal battle with the US Securities and Exchange Commission and increased competition from Crypto.com.

Additionally, analysts from Raymond James pointed out that four C-suite members of Coinbase sold over $383 million in shares, the most since the company’s Nasdaq listing in 2021.

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