Nasdaq-listed cryptocurrency exchange Coinbase has reported a strong first quarter of the year, with total revenue surging to $1.6 billion and net income reaching $1.2 billion. The exchange’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed to $1 billion.
That figure stands above the $977.5 million the exchange reported last year, and notably $737 million of Coinbase’s net income stemmed from unrealised gains on crypto assets.
Coinbase ended the quarter with a healthy $7.1 billion in capital, bolstered by $1.1 billion raised through the sale of convertible notes. However, total liabilities also increased, rising from $200.7 million to $339.9 million year-over-year.
The cryptocurrency exchange’s revenue from consumer transactions rose 99% from the previous quarter to top $935 million, while its trading volume rose 93% to $56 billion in a move that outperformed the U.S. spot market, which rose 91%.
Institutional adoption also accelerated, generating $85 million in revenue, a 133% increase quarter-over-quarter. Coinbase Prime, the platform catering to institutional investors, witnessed a 105% surge in trading volume, reaching $256 billion and surpassing the U.S. spot market’s growth once again.
Coinbase’s custodial services revenue jumped 64% to $32 million in Q1, primarily driven by rising crypto asset prices and revenue generated from Bitcoin exchange-traded funds. As the custodian for eight of the eleven newly launched Bitcoin ETF, Coinbase held $171 billion in assets under custody at the quarter’s close.
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- Source: https://www.cryptocompare.com/email-updates/daily/2024/may/03/
