Coinbase Net Income Hits $1.2 Billion in Q1

In the first quarter of 2024, Coinbase reported strong financial results, surpassing its entire earnings from 2023. This was largely driven by favorable market conditions and the introduction of new Bitcoin exchange-traded funds (ETFs).

The cryptocurrency exchange announced a net income of $1.2 billion and total revenue of $1.6 billion for the quarter. Notably, Coinbase achieved an Adjusted EBITDA of $1 billion, compared to $977.5 million in the previous year. The increase in net income included $737 million in pre-tax unrealized gains on crypto assets. By the end of the quarter, Coinbase had strengthened its financial position with $7.1 billion in capital, bolstered by $1.1 billion from the sale of 2030 convertible notes.

Revenue from consumer transactions saw a dramatic increase, totaling $935 million, up 99% from the previous quarter. This was mirrored by a significant 93% rise in trading volume, which reached $56 billion, outperforming the U.S. spot market’s growth. Institutional transactions also experienced growth, with revenue climbing to $85 million, a 133% increase from the prior quarter. Coinbase Prime, the platform’s service for institutional clients, saw a 105% increase in trading volume to $256 billion, also surpassing market performance.

Coinbase’s custodial services revenue jumped 64% to $32 million, influenced by rising crypto asset prices and contributions from Bitcoin ETFs. The company now acts as custodian for eight of the eleven newly launched Bitcoin funds, with assets under custody reaching $171 billion by quarter’s end.

The exchange credited the new Bitcoin ETFs and strong market conditions for a surge in customer engagement, particularly among institutional clients. According to Coinbase, “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.”