Coinbase revenue surges more than 130% driven by postelection crypto rally

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Coinbase revenue surges more than 130% driven by postelection crypto rally

In this photo illustration, a Coinbase logo is displayed on a smartphone with stock market percentages on the background. 

Omar Marques | SOPA Images | Lightrocket | Getty Images

Coinbase Thursday reported better-than-expected

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and its biggest quarterly revenue in three years, strengthened by a raging postelection rally that pushed crypto prices to new high after new high at the end of last year.

The stock rose 2% in extended trading.

Here’s what the company reported for the fourth quarter compared with what Wall Street expected, according to a survey of analysts by LSEG:

Earnings per share: $4.68 vs. $1.81 expectedRevenue: $2.27 billion vs. $1.88 billion expected

Coinbase, which operates the largest U.S. marketplace for buying and selling cryptocurrencies, reported net income of $1.3 billion, or $4.68 per share, compared with $273 million, or $1.04 a share, in the same ******* a year ago.

It also posted revenue of $2.3 billion, compared with $953.8 million in the same ******* a year ago. Transaction revenue more than doubled from last year to $1.56 billion, and beat analyst estimates of $1.29 billion, according to StreetAccount.

Total trading volume was $439 billion, up 185% year-over-year. Consumer trading volume rose 224% from the same ******* a year ago while institutional trading volume increased 176%.

“The majority of the Y/Y growth in Trading Volume was driven by higher levels of Crypto Asset Volatility — particularly in Q1 and Q4 — as well as higher average crypto asset prices,” the company said in its shareholder letter. “The two primary factors underpinning these stronger macroeconomic factors were the launch of the bitcoin ETF products in Q1’24, and the election of a pro-crypto President and Congress in Q4’24 and the associated expectation of regulatory clarity—both of which resulted in elevated spot crypto trading activity.”

Coinbase reported it has generated $750 million in trading revenue through Feb. 11, and it is expected to be in the mid-to-high teens as a percentage of net revenue for the current quarter. The company has been making efforts to diversify its revenue streams away from trading. As of the fourth quarter, trading makes up 68.5% of its total revenue — with most of it coming from retail traders.

Revenue from its subscription and services business – which includes stablecoins, staking, custody, and its Coinbase One product – is expected to be between $685 million and $765 million for the current quarter.

This is a breaking news story. Please check back for updates.

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