Cryptocurrency exchange Coinbase reported better than anticipated earnings in Q1 2024 as crypto assets and wider market sentiments soared. The largest crypto exchange in the United States released its Q1 results today with figures beating the most projected number from analysts.
According to the release, Coinbase revenues more than doubled to $1.58 billion above the projected $1.32 figures by most analysts. Revenues from transactions almost doubled over $1 billion from last quarter as the exchange saw new flows in retail and institutional clients.
While most retail clients contributed to this figure, institutional investors boosted trading volumes on the platform. Net income stood at $4.40 per share, hitting $1.17 billion as positive numbers dominated the quarter. Last year, net income plummeted at a loss of $79 million following the wider market downtrend before the anticipation of spot Bitcoin ETFs.
The highs in the last three months have rallied the stock above 30% this year. The platform’s mobile app downloads and other factors saw an increase. Coinbase recorded over $300 million in terms of transaction revenue last month.
These bullish factors have led to analysts making predictions towards Q2 although the cryptocurrency market has seen declined sentiments. As post-halving sentiment drops, analysts opine that crypto gains may not be as spiked as the first three months of the year.
The improved earnings of Coinbase follow other crypto stocks in the United States. Firms like Meta and Alphabet are tech stocks with similar gains recording soaring profits.
The price of Bitcoin and other crypto assets was instrumental to the rally in Coinbase stock. The anticipation of spot Bitcoin ETFs in the United States pushed the price of BTC above $44,000 in December.
The approval on Jan 11 led to massive inflows taking the price to a new all-time high above $72,000. This led to increased institutional activity in the cryptocurrency market. Centralized crypto exchanges like Coinbase were at an advantage as on-chain transactions in decentralized finance (DeFi) surged.
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