Coinbase experienced a notable recovery in the first quarter of 2024, with total revenue reaching $1.6B and net income hitting $1.2B.
A cryptocurrency trading platform Coinbase recorded a significant recovery during the first three months of 2024. An improvement in market performance and the introduction of Bitcoin exchange-traded funds (ETFs) bolstered this recovery.
Coinbase Q1 Revenue Report
For the first quarter, the exchange reported total revenue of $1.6 billion and net income of $1.2 billion. Additionally, it achieved $1 billion in adjusted EBITDA, which is a measure of a company’s profitability before interest, taxes, depreciation and amortization.
Coinbase’s adjusted EBITDA in 2023 was a total of $977.5 million. Unrealized gains on cryptocurrency assets, totaling $737 million before taxes, boosted the company’s net income, according to the financial report that Coinbase issued.
The company raised $1.1 billion in net cash from the issue of convertible notes with a 2030 maturity, bringing its total capitalization to $7.1 billion at the end of the quarter. Over the course of the first three months of 2024, total liabilities rose from $200.7 million in the first quarter of 2023 to $339.9 million.
The revenue from consumer transactions saw a quarter-on-quarter increase of 99%, surpassing $935 million. In comparison to the United States spot market, which had a 91% increase in trading volume during the same period, the total trading volume in the quarter was $56 billion, or a 93% increase.
The quarter also saw a rise in institutional transactions, which resulted in revenue of $85 million. This figure represents a 133% increase from the previous quarter to the current quarter.
The exchange reports that the trading volume on its platform for institutional clients, Coinbase Prime, increased by 105% to a total of $256 billion, beating the spot market in the United States.
“Our institutional platform, Coinbase Prime, hit all-time highs in trading volume and the number of active clients in Q1. […] The bitcoin ETFs – combined with strong market conditions in Q1 – unlocked a flywheel of customer engagement across this more robust product suite. In fact, nearly 40% of institutional clients engaged with at least 3 products in Q1.”
Additionally, the exchange reported a 64% increase in revenue from custodial services, which reached $32 million in the first quarter. The pricing of crypto assets and revenue from Bitcoin exchange-traded funds (ETFs) primarily drove this increase.
When it comes to the eleven recently formed Bitcoin funds, the exchange acts as a custodian for eight of the eleven newly formed Bitcoin funds. When the quarter came to a close, the total value of assets held by Coinbase was $171 billion.