Coinbase, the US’s largest crypto exchange, reported a near-record $1.3 billion in profits and $2.2 billion in revenue for its fourth quarter. This marks a significant turnaround from last year’s performance, which saw 90% of its revenue come from retail investors. In contrast, this year’s revenue comes from a more diversified mix of sources.
The company’s retail trading business remains its mainstay, generating $1.3 billion in consumer trading fees. However, institutional trading revenues have also seen significant growth, tripling to over $140 million in the fourth quarter.
Coinbase also reported substantial revenue from stablecoins and blockchain rewards, including a deal with Circle, which generated $225 million. The company’s staking business earned almost 10% of its total returns in the fourth quarter.
Despite this strong performance, traders were unimpressed by Coinbase’s earnings, with the company’s stock sliding 4% to $276 after markets opened on Friday. Analysts note that any positive regulatory shifts in Washington could be a major boost for Coinbase in 2025.
Devin Ryan, head of financial technology research at Citizens JMP, believes that these regulations will bring clarity to trading volumes and benefit Coinbase. Dan Dolev, senior analyst at Mizuho Securities, is more cautious, warning that the recent surge may have been a “Trump bump” and cautioning against any negative sentiment towards stocks.
Source: https://fortune.com/crypto/2025/02/14/coinbase-and-brian-armstrong-on-how-they-generated-their-fourth-quarter-returns