Daily Management Review

Coinbase increases profit 24 times year-on-year


The largest cryptocurrency exchange, Coinbase, has reported financial results for the first time since its April listing. The company reported first-quarter net income of more than $771 million, more than four times the fourth-quarter 2020 figure of $177 million and more than 24 times the first-quarter profit a year earlier.

Marco Verch via flickr
Marco Verch via flickr
The largest cryptocurrency exchange, Coinbase, reported its first financial results since its direct listing in April 2021. It earned three times more in the first quarter than in the fourth quarter last year and nearly 9.5 times more than in the first quarter a year earlier. Profits were up more than 24 times from the first quarter a year earlier and more than four times from the last quarter of 2020, CNBC reports. 

The cryptocurrency exchange generated $1.8 billion in revenue in the first quarter, compared to $585 million in the fourth quarter of 2020 and $191 million a year ago. The company posted net income of more than $771 million for the quarter ($177 million in the fourth quarter of 2020). Earnings per share were $3.05. The results were largely in line with estimates that Coinbase reported on 6 April, about a week before its public debut on the exchange. About 94% of the company's net revenue in the first quarter came from operating fees from cryptocurrency trading. Coinbase's fees are higher than some of its competitors.

Monthly user transactions more than doubled from the previous quarter, rising from 2.8 million to 6.1 million. Coinbase's 56 million verified users, along with record price movements in the crypto market, led to trading volume more than tripling from the previous quarter. The company said it plans to list dogecoin as an exchange-traded cryptocurrency in the next six to eight weeks.

source: cnbc.com