US cryptocurrency exchange Coinbase recently released encouraging financial results for the latest quarter, reflecting the strength of the crypto market. With bitcoin holding above $50,000 for the past week, the cryptocurrency spring has also benefited Coinbase. The company unveiled its results last Thursday, announcing an impressive 64% increase in revenue compared to the previous quarter, reaching $529 million, as well as a quarterly net profit of $275.68 million.
Coinbase recorded a significant increase in trading volume compared to the previous year, largely due to the popularity of bitcoin spot ETFs, which attracted new investors to the platform. This trend could also be attributed to the waning fortunes of Binance, another giant in the crypto sector, which has been relatively quiet since paying a record fine to the US authorities.
Optimistic forecasts for 2024
Coinbase has, however, issued an optimistic forecast for 2024, anticipating continued growth in revenues from subscriptions and services, with fees unlikely to fall. Alesia Haas, the company’s CFO, pointed out that despite persistent concerns about fee compression over the years, this trend has not materialised to date.
Coinbase has also allayed investor concerns about its shrinking market share and increased competition in the cryptocurrency sector. For now, the platform is maintaining its position against giants such as Robinhood and Fidelity Investments, which recently launched their own bitcoin spot ETF in collaboration with other major firms, including BlackRock.
In response to this positive news, Nasdaq-listed Coinbase’s shares rose by more than 15% in pre-opening trading, following an upgraded recommendation from JP Morgan from ‘underweight’ to ‘neutral’ on Coinbase shares.
