Coinbase Exceeds Expectations in Q1 2024, Fueled by Bitcoin ETFs and Market Conditions
Coinbase, a leading cryptocurrency exchange, has reported better-than-expected results for the first quarter of 2024, surpassing its annual report for 2023. The exchange’s positive performance can be attributed to favorable market conditions and the successful launch of Bitcoin exchange-traded funds (ETFs).
During the first quarter, Coinbase generated a total revenue of $1.6 billion, with a net income of $1.2 billion. The company also achieved an impressive adjusted EBITDA of $1 billion, which represents the profit before interest, taxes, depreciation, and amortization. In comparison, Coinbase’s EBITDA for 2023 stood at $977.5 million, even after adjustments were made.
The significant increase in the company’s net income was largely due to the realization gains of $737 million from 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 through the conversion of 2030 convertible notes.
Source: Coinbase
Furthermore, the total liabilities for the period expanded from $200.7 million in the first quarter of 2023 to $339.9 million in 2024. Consumer transaction sales reached a record high of $935 million, accounting for a staggering 99% increase. Additionally, the dealership volume for the quarter reached $56 billion, experiencing an impressive growth rate of 93%, surpassing the growth rate of the US spot market, which was 91% during the same period.
Institutional transactions also played a significant role in driving the company’s figures, generating $85 million in revenue and achieving a remarkable growth rate of 133% in the quarter. Notably, trade volume on Coinbase’s institutional platform, Coinbase Prime, increased by 105% compared to the previous quarter, reaching $256 billion. This volume is two to three times higher than the volume in the US spot market.
The successful launch of Bitcoin ETFs and favorable trading conditions further boosted Coinbase’s performance in the first quarter. As a result, Coinbase Prime, the company’s institutional platform, achieved all-time highs in trading volume and client numbers. It was revealed that nearly 40% of institutional clients interacted with at least three of Coinbase’s Bitcoin products, indicating greater client engagement.
Additionally, Coinbase’s concierge service experienced a significant surge of 64%, generating $32 million in revenue for the quarter. This growth can be attributed to the rise in crypto asset prices and revenue from Bitcoin ETFs. While Coinbase remains the custodian for eight out of the 11 new funds in its range of Bitcoin products, other major players handle the remaining funds as the industry continues to innovate. As of the end of the quarter, the custodial portfolio amounted to an impressive $171 billion.
