The cryptocurrency exchange reports it earned as much in Q1 as it did for all of 2023
Coinbase is reporting a significant resurgence in the first quarter of 2024. An upswing in market activity and the highly-anticipated launch of Bitcoin exchange-traded funds (ETFs) largely fueled the crypto exchange’s recent performance.
In the first quarter, Coinbase reported $1.6 billion in total revenue, $1.2 billion in net income, and $1 billion in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA).
Coinbase had $7.1 billion in capital at the end of the quarter and earned $737 million in pre-tax unrealized crypto asset gains. The firm finished the first quarter with $339.9 million in liabilities, an increase from $200.7 million during the same period in 2023.
Consumer transaction revenue increased by 99% quarter on quarter to $935 million. Coinbase trading volume was up 93% in the first quarter to $56 billion, outperforming the US spot market’s 91% increase.
Custodial services revenue also increased by 64% to $32 million in the first quarter, due mainly to rising prices and Bitcoin ETF sales. Coinbase is the custodian of eight newly offered BTC funds, which ended the quarter with $171 billion in assets.
Coinbase’s institutional transactions rose 133% quarter by quarter, with $85 million in revenue, and trading on Coinbase Prime saw a 105% boost to $256 million. It explained, “Our institutional platform, Coinbase Prime, hit all-time highs in trading volume and the number of active clients in Q1. […] The bitcoin ETFs – combined with strong market conditions in Q1 – unlocked a flywheel of customer engagement across this more robust product suite. In fact, nearly 40% of institutional clients engaged with at least 3 products in Q1.”
