Coinbase reports Q1 net income at $1.17 billion

abdelaziz Fathi

Coinbase Global reported strong first-quarter earnings and revenue, thanks in part to a surge in cryptocurrency trading activity triggered by the introduction of the first U.S.-listed exchange-traded funds (ETFs) tracking bitcoin in January.

SEC vs. Coinbase:

For the quarter ending March 31, Coinbase reported a net income of $1.2 billion, or $4.84 per share, a major turnaround from a $79 million loss, or $0.34 per share, during the same period last year. This rebound coincides with a bull run in the crypto market following the U.S. Securities and Exchange Commission’s approval of several spot price-based bitcoin ETFs, ending years of negotiation.

The buzz around the new ETFs, especially with Coinbase acting as the custodian for major funds like BlackRock’s iShares Bitcoin Trust (IBIT.O), helped push bitcoin prices to record highs above $72,000 in March. This, in turn, led to a strong boost in Coinbase’s trading volumes, which totaled $312 billion in the first quarter, up from $145 billion a year earlier.

Coinbase CEO Brian Armstrong highlighted the company’s lean cost structure and continuous innovation as key to their financial performance. “Keeping our cost structure low while continuing to innovate is really paying off,” Armstrong said during a call with analysts.

Meanwhile, Coinbase has managed to boost its interest income, earning $66.7 million from interest and finance fees in the first quarter, an increase from $43.3 million the previous year. This income primarily comes from USD Coin (USDC), a stablecoin that Coinbase manages with Circle, backed by dollar and equivalent assets.

Coinbase has been expanding its range of crypto perpetual futures offerings since it received regulatory approval to serve non-U.S. customers in select jurisdictions last year. Despite this progress, the U.S. market has posed greater challenges.

Regulatory hurdles have made it difficult to obtain similar approvals stateside, where American regulators are generally hesitant to approve crypto-based futures that carry higher risks. However, Coinbase did secure a breakthrough last year when it received the nod from the National Futures Association to offer crypto futures trading to a select group of U.S. retail traders via Coinbase Advanced.

The expansion of Coinbase’s perpetual futures offerings comes amidst a surge in derivatives trading volumes, which soared by 86.5% last month to $6.18 trillion.

Read this next

blockdag

How to Make a Fortune with Crypto: $100 Investment Plan

Starting with just $100, anyone can tap into the thriving crypto market that’s bursting with potential.

Interviews

Exclusive: Autochartist CEO Ilan Azbel Delivers Insight on AI at iFX EXPO LATAM 2024

In an insightful interview with FinanceFeeds at iFX EXPO LATAM 2024, Ilan Azbel, CEO of Autochartist, discussed the evolution of trading technology, effective trader engagement strategies, the integration of AI in trading analytics, and the cautious approach of regulated brokers towards its adoption.

Market News

Weekly data: Oil and Gold: Price review for the week ahead.

This preview of weekly data looks at USOIL and XAUUSD where economic data coming up later this week are the main market drivers for the near short-term outlook.

Crypto Insider

Octa’s insights: the approval of spot Ethereum ETFs is not going as planned.

The approval of spot Bitcoin exchange-traded funds (ETF) by the U.S. Securities and Exchange Commission (SEC) in January 2024 triggered a substantial rise in the bitcoin price. Also, interest in the proposed spot Ethereum ETF has increased

Industry News

Bursa Malaysia introduces Trading Reminders

The Trading Reminder flag aims to alert investors to exercise caution when encountering a stock displaying persistent unusual price and/or volume movements after the listed company’s UMA response.

Industry News

21 Republican representatives want to “End the Fed”

“Americans are suffering under crippling inflation, and the Federal Reserve is to blame.”

Retail FX

Scope Markets launches unleveraged trading

“Whilst our traditional contract for difference (CFD) products continue to prove incredibly popular, the Invest account is unleveraged and only allows ‘long’ positions to be taken, a combination that significantly reduces the risk of capital losses.”

blockdag

Unlocking Profit Potential: Earn Returns with DecodeEX Experience Bonus!

DecodeEX, the innovative brokerage subsidiary of Decode Global, announced its experience bonus campaign, offering every user the opportunity to maximize their strategic trading potential with up to $10,000 in experience bonus. 

Market News

Pretiorates’ Thoughts 28 – Precious metals and base metals out of control

Ten days ago we mentioned in Pretiorates’ Thoughts 26: Chapter 2 should start with Precious Metals.

<