Coinbase Exceeds Expectations in Q1 2024, Boosted by Bitcoin ETFs
The latest quarterly results from cryptocurrency exchange Coinbase have surpassed even its own projections for the year 2023. The company reported a strong rebound in the first quarter of 2024, driven by favorable market conditions and the introduction of Bitcoin exchange-traded funds (ETFs).
During Q1 2024, Coinbase achieved a total revenue of $1.6 billion, with a net income of $1.2 billion. It also accumulated $1 billion in Adjusted EBITDA, a significant increase compared to its 2023 EBITDA of $977.5 million.
The company’s net income received a substantial boost of $737 million from gains on its crypto assets, including Bitcoin. As a result, Coinbase closed the quarter with an asset base of approximately $7.1 billion, which includes $1.1 billion in net cash generated from the conversion of 2030 convertible notes.
Coinbase also experienced impressive growth in its consumer transactions, reaching $935 million, the highest recorded figure to date. Dealer volume for the quarter was $56 billion, showing a remarkable 93% increase compared to the same period last year. This growth outperformed the US spot market, which saw a 91% increase.
Institutional transactions also contributed to the positive figures, generating $85 million and a revenue growth of 133% in the quarter. Coinbase Prime, the company’s platform for institutional clients, saw an impressive 105% increase in trade volume compared to the previous quarter, amounting to $256 billion. This is two to three times the volume of the US spot market.
The introduction of Bitcoin ETFs played a significant role in Coinbase’s success during the first quarter. Coinbase Prime, the institutional platform, experienced record-breaking trading volume and attracted a larger number of clients. Additionally, nearly 40% of institutional clients interacted with at least three of Coinbase’s Bitcoin products.
Coinbase’s concierge service also saw substantial growth, with a 64% increase in revenue, totaling $32 million for the quarter. This growth was primarily driven by the performance of crypto asset prices and revenue from Bitcoin ETFs. While Coinbase remains the custodian for eight out of the 11 new funds within its range of Bitcoin products, other major players are also involved in handling the remaining funds as the industry continues to innovate. As of the end of the quarter, Coinbase’s custodial portfolio reached an impressive $171 billion.