Coinbase, the largest U.S. marketplace for buying and selling cryptocurrencies, reported better-than-expected fourth-quarter results, with revenue reaching $2.27 billion – its biggest quarterly revenue in three years. The company’s earnings per share were $4.68, beating analysts’ expectations.
The surge in trading volume was driven by increased crypto asset volatility, particularly in the first and fourth quarters of 2024. Total trading volume reached $439 billion, with consumer trading volume increasing 224% year-over-year and institutional trading volume rising 176%.
To diversify its revenue streams away from trading, Coinbase aims to focus on subscription and services businesses, including stablecoins, staking, custody, and its Coinbase One product. The company expects revenue from these areas to be between $685 million and $765 million for the current quarter.
USDC, a stablecoin issued by Circle, is expected to drive growth in sales and marketing expenses in the first quarter. CEO Brian Armstrong stated that USDC aims to become the number one stablecoin, citing its network effect and compliant approach as key factors.
Coinbase’s net income was $1.3 billion, compared to $273 million in the same period last year. The company has generated $750 million in trading revenue through February 11 and expects trading revenue to be around 15% of net revenue for the current quarter.
Source: https://www.cnbc.com/2025/02/13/coinbase-coin-earnings-q4-2024.html