Key Takeaways:
- Coinbase’s Q4 2024 revenue surged to $2.3 billion, beating expectations of $1.87 billion.
- Trading revenue skyrocketed by 172% quarter-over-quarter to $1.6 billion, with $439 billion in trading volume.
- The company reported a net income of $1.3 billion, driven by unrealized crypto asset gains and rising adoption.
Coinbase closed 2024 with impressive results reporting Q4 revenue of $2.3 billion – 88% increase quarter over quarter. Trading revenue was a remarkable $1.6 billion, which grew by 172% on the back of $439 billion in trading volume.
Net income also increased sharply to $1.3 billion, boosted by $476 million of unrealized gains from the crypto asset portfolio. The company EPS exceeded consensus at $4.68. These results at the end of the year highlight a considerable improvement in the company and the overall crypto market after drastic changes in regulation in the US.
Total revenue for 2024 was $6.6 billion with net income at $2.6 billion. These gains were the result of Coinbase’s further investment in product development and marketing, followed by increased adoption from institutions and higher prices of crypto assets.
Regulatory Shifts Signal a New Era for Crypto
A changing regulatory landscape has set the stage for Coinbase’s ambitions in 2025. The Trump administration’s pro-crypto stance and growing international interest are reshaping the industry. Coinbase aims to capitalize on this momentum, with plans to scale its products, drive utility, and expand trading market share.
In its Q4 earnings release, the company emphasized the importance of stablecoins such as USDC and its layer-2 infrastructure Base in advancing cryptocurrency’s real-world utility. The company also emphasized its efforts to work with regulators to obtain transparent, pro-innovation regulation. The company is eager to see US stablecoin and market structure legislation ahead, a turning point in cryptocurrency regulation.
Coinbase Sets Ambitious Goals for 2025 Growth
Coinbase maintains an optimistic perspective for the first quarter of 2025, having already achieved transaction revenue of $750 million by mid-February. The company anticipates that its subscription and services revenue will fall between $685 million and $765 million, bolstered by the increasing adoption of staking, custody services, and Coinbase One. However, operating expenses are projected to increase as a result of heightened trading activity and a growing workforce.
Having attained a USD resource balance sheet of $9.3, Coinbase is in a strong position to accomplish its objectives. The focus continues to be on expanding the platform, facilitating on-chain finance innovations, and international coverage. Through relentless pursuit of its core competencies, Coinbase intends to entrench its leadership position in the dynamic crypto economy.
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