The shares of Coinbase, the cryptocurrency exchange, saw an increase of 12.7% after the closing of the day. The spike took place following the report of the earnings of the fourth quarter being published. The report showed a resilient trend. The firm reported a profit and the earnings surpassed the expectations of Wall Street. In the 4th quarter, the net revenue of the exchange reached $905Mn. Compared to the 3rd quarter, this is an increase of 45.2%. The consensus expectation for the 4th quarter was set at $825Mn.
Coinbase Records First Profit In 2 Years
At the same time, the quarter saw Coinbase swing into profit. The net income stood at $273Mn. This made it the first quarter to see a positive income after 2021 4th quarter. In the 3rd quarter of 2023, the exchange’s report had seen it suffer a net loss worth $2Mn. The majority of the revenue of the firm was due to transaction revenue. This stood at $529.3Mn. A further $493Mn came from crypto trading carried out by the consumer. This was almost two times the value recorded in the 3rd quarter. The same doubling was the case for institutional transactions which stood at $36.7Mn.
Coinbase processed more than $29Bn via trading volume emerging from consumers. This was a humongous increase of 164% compared to the previous quarter. The firm further reported an income of $375.4Mn that was earned via services and subscription revenue. The majority of this was due to rewards given via blockchain and stablecoin which stood at $95.1 and $171.6Mn respectively. As a result, the share price of COIN stood at $186.7 at the time of writing this article – a 12.7% after-hours trading rise.
