Coinbase, a cryptocurrency exchange, announced Q1 2024 results that were better than expected due to a surge in both cryptocurrency assets and overall market mood. The biggest cryptocurrency exchange in the US revealed its Q1 earnings today, and the numbers exceeded analyst projections.
In contrast to most analysts’ projections of $1.32 billion, Coinbase’s revenues more than doubled to $1.58 billion, according to the statement. Revenues from trades almost increased by over $1 billion from the previous quarter as the exchange saw new flows in retail and institutional clients.
Institutional investors increased trading volumes on the platform, although the majority of retail clients contributed to this amount. With a $4.40 per share net income and $1.17 billion in revenue, the quarter’s results were primarily positive. Last year, net income plummeted at a loss of $79 million following the broader market downtrend before the anticipation of spot Bitcoin ETFs.
Transaction Income Increases
The stock has increased above 30% this year thanks to the highs of the last three months. The platform’s mobile app downloads and other elements showed an uptick. Last month, Coinbase reported transaction revenue of over $300 million.
These bullish variables have influenced analysts’ projections for Q2, notwithstanding the market’s negative attitude. Analysts predict that cryptocurrency gains will be lower than they were in the first three months of the year as post-halving sentiment declines.
Coinbase’s increased profits are consistent with those of other US cryptocurrency stocks. Tech stocks with comparable gains and skyrocketing profits include Meta and Alphabet.
The Value of Bitcoin for Coinbase Earnings
The increase in Coinbase stock’s price was primarily due to the cost of Bitcoin and other digital assets. In December, the cost of Bitcoin surged above $44,000 due to the expectation of spot ETFs in the US.
Massive inflows following the approval on January 11 sent the price to a fresh all-time high of more than $72,000. Institutional activity in the cryptocurrency market increased as a result. Decentralized finance (DeFi) saw a boom in on-chain transactions, which benefited centralized cryptocurrency exchanges like Coinbase.
