Coinbase’s Q1 earnings outstrip full-year 2023 results, buoyed by market dynamics propelled by the introduction of new Bitcoin ETFs.
The cryptocurrency exchange witnessed a robust recovery in the first quarter of 2024, fueled by improved market performance and the debut of Bitcoin exchange-traded funds (ETFs).
Reporting $1.6 billion in total revenue and $1.2 billion in net income for Q1, Coinbase achieved a milestone of $1 billion in Adjusted EBITDA, surpassing its 2023 figure of $977.5 million.
Coinbase’s net income received a boost from $737 million in pre-tax unrealized gains on crypto assets. The company closed the quarter with $7.1 billion in capital, including $1.1 billion in net cash generated from the sale of 2030 convertible notes.
Total liabilities increased from $200.7 million in Q1 2023 to $339.9 million in 2024.
Consumer transaction revenue surged by 99% quarter over quarter to $935 million, with trading volume reaching $56 billion, up by 93% during the quarter, outpacing the U.S. spot market’s 91% increase over the same period.
Institutional transactions also saw growth, generating $85 million in revenue, marking a 133% increase quarter over quarter. Trading volume on Coinbase Prime, the platform for institutional clients, soared by 105% to $256 billion, surpassing the U.S. spot market.
The exchange’s institutional platform, Coinbase Prime, witnessed record highs in trading volume and active client numbers in Q1. The introduction of bitcoin ETFs, coupled with favorable market conditions, stimulated increased customer engagement across the expanded product suite, with nearly 40% of institutional clients engaging with at least three products in the quarter.
Revenue from custodial services jumped by 64% to $32 million in Q1, primarily driven by cryptocurrency asset prices and revenue from Bitcoin ETFs. Coinbase serves as the custodian for eight of the 11 newly launched BTC funds, with assets under its custody closing the quarter at $171 billion.
Featured image from: cointelegraph.com