United

COIN

USDC

Spot

The foremost crypto exchange in the United States, <a href="https://bitcoinist.com/coinbase-scores-big-ex-uk-minister-joins-council/" target="_blank" rel="noopener nofollow">Coinbase</a>, released its earnings report on February 15th. As expected, there were major takeaways from the financial report, highlighting the crypto company’s performance in the fourth quarter of last year. 
<h2 id="coinbase-s-trading-volume-exceeds-expectations">Coinbase’s Trading Volume Exceeds Expectations</h2> 
Coinbase maximalist Coinbase Duck noted in an X (formerly Twitter) <a href="https://x.com/CoinbaseDuck/status/1758243019080323085?s=20" target="_blank" rel="noopener nofollow">post</a> how the crypto exchange defied expectations in the fourth quarter of 2023. Coinbase recorded $170.6 billion in spot trading volume, exceeding the estimated $168. 
Specifically, a considerable influx of retail investors accounted for 18% of the total spot trading volume against the estimated 16% that <a href="https://www.newsbtc.com/coinbase/bitcoin-etfs-boosts-coinbase-coin-shares-as-jpmorgan-upgrades-rating/" target="_blank" rel="noopener ">the crypto exchange was projected</a> to record. The return of these retail investors is believed to have been partly due to the <a href="https://www.newsbtc.com/news/bitcoin/bitcoin-price-crosses-35000/" target="_blank" rel="noopener ">resurgence that Bitcoin</a> and the broader crypto market experienced towards the end of the year.&nbsp; 
Meanwhile, consumer transaction revenue ($492.5 million) was way below the estimate of $570.9 million. However, Coinbase Duck noted that this wasn’t necessarily bad, as some investors started using advanced trading. 
In a <a href="https://www.sec.gov/Archives/edgar/data/1679788/000167978824000019/shareholderletterq42023.htm" target="_blank" rel="noopener nofollow">letter</a> to its shareholders, the crypto exchange also revealed that some existing users traded significantly higher volumes, which could have necessitated the move to advanced trading.&nbsp; 
Coinbase also recorded a total operating expense of $838 million, which happened to be below the projected estimate of $878 million. Specifically, the crypto exchange did a great job in its transaction expenses, recording an expense of $126 million compared to the estimate of $163 million.&nbsp; 
However, the company’s sales and marketing expenses ($106 million) exceeded the estimate of $90 million. Coinbase <a href="https://www.sec.gov/Archives/edgar/data/1679788/000167978824000019/shareholderletterq42023.htm" target="_blank" rel="noopener nofollow">revealed</a> that this growth was “primarily driven by higher seasonal NBA spending, higher performance marketing spending due to strong market conditions, and increased USDC reward payouts due to growth in on-platform balances.” 
<h2 id="coinbase-had-a-profitable-fourth-quarter">Coinbase Had A Profitable Fourth Quarter</h2> 
Coinbase recorded a net income of $273 million, beating the estimate of $104 million. Interestingly, going by figures from its <a href="https://www.sec.gov/Archives/edgar/data/1679788/000167978824000019/shareholderletterq42023.htm" target="_blank" rel="noopener nofollow">Shareholder letter</a>, the fourth quarter of 2023 was the only one in the year in which the crypto exchange didn’t record a loss for its net income. Meanwhile, the company also recorded its largest net revenue during that period. 
Coinbase suggested that the excitement around the <a href="https://bitcoinist.com/evaluating-performance-bitcoin-etfs-since-launch/" target="_blank" rel="noopener nofollow">Spot Bitcoin ETFs</a> and the expectations of more <a href="https://bitcoinist.com/bitcoin-bull-market-glassnode/" target="_blank" rel="noopener nofollow">favorable market conditions in 2024</a> had contributed to its success in Q4 of 2023. Coinbase is a <a href="https://www.newsbtc.com/coinbase/coinbase-custody-head-departs-as-crypto-giant-prepares-for-bitcoin-etf-services/" target="_blank" rel="noopener ">primary custodian</a> for most Bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust (IBIT). 
Meanwhile, the crypto exchange earned $1.13 per share, beating the forecast of $0.43. This is without the crypto exchange accounting for the FASB change, which Coinbase Duck revealed could bring its earnings per Share (EPS) to $2.1.&nbsp; 
<img loading="lazy" decoding="async" class="wp-image-575462 size-large" src="https://www.newsbtc.com/wp-content/uploads/2024/02/Coinbase-COIN-COINUSD.png?w=860&amp;resize=860%2C410" alt="Coinbase COIN COINUSD" width="860" height="410" srcset="https://www.newsbtc.com/wp-content/uploads/2024/02/Coinbase-COIN-COINUSD.png?w=2372 2372w, https://www.newsbtc.com/wp-content/uploads/2024/02/Coinbase-COIN-COINUSD.png?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/02/Coinbase-COIN-COINUSD.png?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/02/Coinbase-COIN-COINUSD.png?w=860&amp;resize=860%2C410 860w, https://www.newsbtc.com/wp-content/uploads/2024/02/Coinbase-COIN-COINUSD.png?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/02/Coinbase-COIN-COINUSD.png?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/02/Coinbase-COIN-COINUSD.png?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/02/Coinbase-COIN-COINUSD.png?w=1140 1140w" sizes="(max-width: 860px) 100vw, 860px" data-recalc-dims="1"> 
Chart from Tradingview

4 Surprising Insights From Coinbase’s Earnings, COIN Sees Bullish Surge

Table of Contents

NewsBTC

Other articles published on Feb 16, 2024

Will VeThor (VTHO) 65% Surge Hit the Anticipated $0.01 Mark Soon? Analyst Weighs In

Weekly Options Data Announced! While Bitcoin Is Now Giving Signals, Bulls Are Expecting New ATH B...

Lyra Finance Predicts 20% Chance of Bitcoin Hitting Record Highs by April End

Mocaverse strikes up strategic alliance with Halo, KuCoin and OKX

Embracer Group Announces Restructuring and Strategic Shift in Response to Industry Trends

Analyst Foresees Stacks Cryptocurrency Rising on Bitcoin’s Momentum

Join our free newsletter for daily crypto updates!