US-listed cryptocurrency exchange Coinbase released its Q4 financial report on the 15th, showing a significant increase in revenue and its first-ever profit, with further revenue growth expected in the first quarter of this year. Encouraged by this news, Coinbase saw a post-market surge of over 14%.
Summary:
Coinbase blames the US Treasury! The exchange must submit “cryptocurrency mixing” all data reports.
Background:
Bloomberg analyst: Coinbase has a high chance of “winning against the SEC” with a 70% probability of dismissing all charges.
Article Contents:
Significant revenue growth and first profit in two years
Stablecoins contribute greatly to revenue
Coinbase stock price soars over 14% after hours
Blockchain concept stocks experience more gains than losses
US-listed cryptocurrency exchange Coinbase released its Q4 financial report on the 15th after the US stock market closed.
The report showed that Coinbase’s trading revenue in Q4 last year increased by 64% to $529.3 million, benefiting from the optimistic expectations for SEC approval of a Bitcoin spot ETF and the surge of BTC at the time.
This is the first time Coinbase has turned a profit since 2021, with a net profit of $273.4 million in Q4 last year, or $1.04 per share. This is a significant improvement compared to the loss of $557 million, or $2.46 per share, in the same period of the previous year.
According to FactSet’s survey, analysts had previously predicted that Coinbase’s earnings per share in Q4 last year would be only $0.02, far exceeding market expectations. Coinbase’s total revenue in Q4 of $953.8 million also exceeded analysts’ forecast of $826.1 million.
According to the financial report, Coinbase’s subscription and services sector, which covers business beyond trading, saw a revenue increase of nearly 33% to $375.4 million in Q4 last year, with stablecoin revenue contributing the most. Coinbase mainly collaborates with stablecoin issuer Circle to earn stablecoin interest, and the Federal Reserve’s interest rate hikes have been lucrative for Coinbase.
Coinbase further expects that its subscription and services sector revenue will be between $410 million and $480 million in the first quarter of this year, higher than the analyst estimate of $356.22 million from LSEG’s survey.
Originally, Coinbase’s stock price rose 3.3% to $165.67 on the 15th, reaching a new closing high since December 29, 2023. After the impressive financial report was announced, its stock price surged 14.3% to $189.36 after hours.
On the other hand, most blockchain concept stocks rose as Bitcoin broke through $50,000. Apart from Coinbase, Robinhood rose 0.3%, Paypal rose 1.41%, Block rose 3.07%, and Mastercard rose 1.31%. However, mining companies Riot Platforms fell 6.19% and Marathon Digital fell 8.13%.
The performance of blockchain concept stocks. Source: TipRanks
In addition, the US Department of Commerce released data on Thursday showing a 0.8% month-on-month decrease in US retail sales in January, exceeding expectations. This further boosted market expectations that the Federal Reserve will start cutting interest rates in the coming months. The US stock market on the 15th saw more gains than losses:
Dow Jones Industrial Average rose 348.85 points or 0.91% to close at 38,773.12 points.
S&P 500 Index rose 29.11 points or 0.58% to close at 5,029.73 points.
Nasdaq Composite Index rose 47.03 points or 0.30% to close at 15,906.18 points.
Philadelphia Semiconductor Index fell 7.31 points or 0.16% to close at 4,558.10 points.
The performance of various sectors in the S&P 500 Index. Source: finviz
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What disaster would occur if Coinbase, the custodian of eight Bitcoin spot ETFs, were hacked?