Coinbase’s Q1 Revenue Surges to $1.6 Billion, Up 72% Quarter-on-Quarter

Coinbase’s Remarkable Q1 2024 Performance

Coinbase, the largest cryptocurrency exchange in the United States, reported a remarkable revenue of $1.6 billion in the first quarter of 2024, marking a significant 72% increase from the previous quarter. The company also disclosed a net income of $1.18 billion ($4.40 per share).

Factors Driving Coinbase’s Performance

• Surge in transactions due to the overall uptrend in the cryptocurrency market
• Favorable change in accounting rules related to cryptocurrencies

Revenue Breakdown

The consumer transaction revenue doubled, reaching $935.2 million, with volume increasing by over 93% to $56 billion. Institutional trading saw even more significant growth, with revenue surging by 133% to $85.4 million, and volume more than doubling to $256 billion.

Market Share and Strategic Investments

Coinbase highlighted its increased market share in U.S. spot and derivatives markets, achieving all-time highs on Coinbase Prime. The company also invested in Base, its Ethereum layer-2 chain, which generated $56.1 million in revenue during the quarter.

Financial Highlights and Future Outlook

• Q1 EBITDA reached an impressive $1 billion, surpassing the total for the entire previous year
• Revenue figures were partly boosted by a one-time $737 million paper gain from new accounting rules
• Transaction expenses grew significantly by 73% to $217 million
• Q2 expenses estimated to be as high as $890 million

Market Trends and Impact on Coinbase

During the quarter, the price of Bitcoin rose by 57% and reached an all-time high of $73,000. Coinbase’s recent gains were primarily driven by favorable market conditions, with over $50 billion flowing into spot exchange-traded funds approved by the SEC on January 11.