Coinbase Shares Rise Almost 13% Following Q4 Earnings Report
After releasing a strong fourth-quarter earnings report, shares of crypto exchange Coinbase surged 12.7% in after-hours trading. The company reported a 45.2% increase in net revenue to $905 million in the fourth quarter, exceeding Wall Street’s estimated $825 million.
Additionally, Coinbase swung to a profit of $273 million in the quarter, a significant improvement compared to the previous quarter’s $2 million net loss.
Transaction revenue was the main source of income with $529.3 million, driven by consumer crypto trading which saw a 93% increase from the third quarter. Institutional transaction revenue also more than doubled to $36.7 million.
The firm saw a 164% quarter-on-quarter increase in trading volume from consumers, totaling over $29 billion. Furthermore, Coinbase earned $375.4 million from subscription and services revenue, mostly from stablecoin and blockchain rewards of $171.6 million and $95.1 million, respectively.
