Coinbase, the largest U.S. cryptocurrency exchange, has reported impressive first-quarter financial results, surpassing analysts’ expectations. The company reported a first-quarter revenue of $1.6 billion, marking a 72% increase from the previous quarter. The reported net income for Coinbase was $1.18 billion, or $4.40 per share, fueled by a boost in transactions and favorable changes to crypto accounting rules.
Consumer transaction revenue doubled from the previous quarter, reaching $935.2 million, with volume up over 93% to $56 billion. Institutional trading revenue also saw significant growth, up 133% to $85.4 million, with volume doubling to $256 billion. Bitcoin made up a third of both consumer and institutional transactions.
Despite the positive financial results, Coinbase’s shares were slightly down in after-hours trading, after gaining almost 9% earlier in the day. The company’s EBITDA for the quarter was $1 billion, surpassing all of last year’s figures. The outsize revenue figures were boosted by a one-time $737 million paper gain due to new accounting rules.
In a letter to shareholders, Coinbase highlighted the progress made against their 2024 priorities of driving revenue, utility, and regulatory clarity. The company also saw success with Base, its Ethereum layer-2 chain, which brought in $56.1 million since its launch in August. Additionally, Coinbase announced a minority stake in USDC issuer Circle.
While Coinbase has diversified its revenue streams, most gains in Q1 were attributed to favorable market conditions, including a 57% increase in the price of Bitcoin, reaching an all-time high of $73,000. Looking ahead to Q2, Coinbase estimates overall expenses to be as high as $890 million, driven by elevated expenses associated with higher trading volumes.
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