Coinbase Beats Q4 Estimates, Fueled by Market Rally

Twitter icon  •  Published 1 month ago  •  Hassan Maishera

Cryptocurrency exchange Coinbase generated $953.8 million in revenue in Q4 2024, surpassing the $826.1 million predicted by market analysts.

TL;DR

  • Coinbase generated $529 million as transaction revenue in the fourth quarter of 2023.

  • The crypto exchange generated $953.8 million in revenue, surpassing analysts’ estimates.

Coinbase’s Q4 Revenue Surpasses Estimates

Coinbase, one of the leading cryptocurrency exchanges in the world, reported its 2023 fourth-quarter revenue on Thursday. According to its statement, the Q4 revenue of  $953.8 million surpassed analyst estimates. It is also a 41% increase from what was generated in the third quarter of 2023.

The cryptocurrency exchange further added that the Q4 2023 revenue is 50% higher than the same period of 2022. Market analysts had predicted that Coinbase’s revenue for Q4 would be $826.1 million. While commenting on the earnings, the crypto exchange said,

"In 2023, we saw our operational rigor pay off. We achieved our financial goal, launched new innovative products, strengthened our competitive position, and doubled down on our efforts to create momentum for a workable regulatory framework for crypto in the US."

The cryptocurrency exchange also reported a net income of $273 million for the quarter, which is substantially higher than the loss of $557 million in the same period of last year.

Coinbase attributed the growth to the surge in cryptocurrency prices in recent months. The company said,

“Fourth-quarter transaction revenue surged 83% Q/Q to $529 million, primarily driven by higher levels of volatility and crypto asset prices. We saw a sharp increase in crypto asset volatility ... the increases were driven by a variety of factors, principally excitement around Bitcoin spot ETF approvals and broad expectations around improving macroeconomic conditions in 2024."

Coinbase is the third-largest cryptocurrency by trading volume, just behind Binance and Bybit. The crypto exchange processes over $3 billion daily. The company's shares rose by 14%  in after-hours trading and now trades at $189.29.

 

Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.