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Listed crypto company Coinbase pleasantly surprised Wall Street when it released its figures for Q4 and for all of 2023 on Thursday evening. The company posted its first quarterly profit in two years, after revenue in the 4th quarter rose by 41% to $954 million. For the year under one, revenue passed US$3.1 billion. Wall Street responded by sending prices up more than 13 percent in after-exchange trading.
But it wasn't just the numbers that top boss Brian Armstrong was happy with. In a conference call following the presentation, Armstrong described himself as “THE trusted leader in crypto,” reporting on progress in trading, financial services and launching new products.
In the fourth quarter, transaction revenues rose by 83% to $529.3 million. Gross trade volume from retail customers increased by 164% to $29 billion, confirming that the crypto winter is in many ways over and that retail customers are back in the market. Institutional clients increased their trading volume by 92%. But when it comes to Coinbase's posted revenue, it's the consumer customers who pay most of the guild, as 493 of the $529.3 million transaction revenue comes from the retail segment.
Coinbase is also no longer solely dependent on transaction volume. Revenue from subscriptions and services increased by 12% to $375 million quarter-over-quarter. Here it is stablecoins that make up the largest share. Coinbase predicts a subscription and service revenue of between $410 and $480 million for Q1 2024, up from $375 million in Q4 2023. It is in this quarter that Coinbase will begin to gain its share of the major ETF interest, as Coinbase has been selected as a Custody partner by virtually all of the new ETF providers in the United States.
If you follow Coinbase over a slightly longer time horizon, then it is obvious that Coinbase is no longer just a crypto exchange. One of the biggest novelties on the product side in 2023 was the launch of Base, a so-called Layer 2 platform on top of Ethereum. Base enables Coinbase to participate in the development of decentralized applications, and is thus in many ways an important hub in the decentralized ecosystem, despite the fact that Coinbase itself is a centralized player.
Listed crypto company Coinbase pleasantly surprised Wall Street when it released its figures for Q4 and for all of 2023 on Thursday evening. The company posted its first quarterly profit in two years, after revenue in the 4th quarter rose by 41% to $954 million. For the year under one, revenue passed US$3.1 billion. Wall Street responded by sending prices up more than 13 percent in after-exchange trading.
But it wasn't just the numbers that top boss Brian Armstrong was happy with. In a conference call following the presentation, Armstrong described himself as “THE trusted leader in crypto,” reporting on progress in trading, financial services and launching new products.
In the fourth quarter, transaction revenues rose by 83% to $529.3 million. Gross trade volume from retail customers increased by 164% to $29 billion, confirming that the crypto winter is in many ways over and that retail customers are back in the market. Institutional clients increased their trading volume by 92%. But when it comes to Coinbase's posted revenue, it's the consumer customers who pay most of the guild, as 493 of the $529.3 million transaction revenue comes from the retail segment.
Coinbase is also no longer solely dependent on transaction volume. Revenue from subscriptions and services increased by 12% to $375 million quarter-over-quarter. Here it is stablecoins that make up the largest share. Coinbase predicts a subscription and service revenue of between $410 and $480 million for Q1 2024, up from $375 million in Q4 2023. It is in this quarter that Coinbase will begin to gain its share of the major ETF interest, as Coinbase has been selected as a Custody partner by virtually all of the new ETF providers in the United States.
If you follow Coinbase over a slightly longer time horizon, then it is obvious that Coinbase is no longer just a crypto exchange. One of the biggest novelties on the product side in 2023 was the launch of Base, a so-called Layer 2 platform on top of Ethereum. Base enables Coinbase to participate in the development of decentralized applications, and is thus in many ways an important hub in the decentralized ecosystem, despite the fact that Coinbase itself is a centralized player.
