Coinbase Profits Surge Over $1 Billion in Q1, Boosted by Bitcoin ETF Trend — TradingView News

For the first quarter of 2024, Coinbase unveiled a report indicating a significant 72% growth in revenue from the previous quarter, totaling $1.6 billion. The robust financial performance was highlighted by a net income of $1.176 billion, a staggering 1,588% year-over-year increment, marking a major recovery from the prior year’s $79 million net loss. When compared to the preceding quarter, the net income for Coinbase saw a 331% spike.

The digital currency exchange recorded an increase in its market position in both the US spot and derivatives markets, and it achieved new peaks with its Coinbase Prime service and the market cap of USDC. The firm credits significant international ventures as a key factor in this progress.

Bitcoin ETFs’ Influence

Coinbase noted, “The growth in market capitalization cannot be pinned on a single catalyst, but we assess that it was propelled by various elements, including the emergence of Bitcoin ETFs which, to date in 2024, have seen net inflows exceeding $11 billion.”

Cited from: Coinbase

The Adjusted EBITDA soared from $324 million in the last quarter to $1.014 billion against the $287 million recorded in the same quarter of the previous year. Looking to the future, Coinbase foresees sustained growth into the second quarter of 2024, with optimistic expectations for transaction volumes, as well as subscription and service revenues.

Recently, the cryptocurrency exchange has been granted registration as a restricted dealer by the Canadian Securities Administrators, marking a significant milestone in Coinbase’s international market expansion strategy and becoming the pioneering global crypto exchange registered in Canada.

This Canadian approval complements Coinbase’s existing repertoire of international registrations, including jurisdictions such as France, Spain, Singapore, Italy, Ireland, and the Netherlands. In the US context, however, a Manhattan federal judge has recently allowed the US Securities and Exchange Commission to advance with a lawsuit against Coinbase, though one accusation was dismissed.

Cited from: Coinbase

Confronting Regulatory Hurdles

Addressing regulatory challenges, Coinbase stated, “In Washington DC, there’s a noticeable shift in the perspective of influential policymakers towards the necessity of legislating stablecoins, which we regard as an encouraging indication of the potential development of comprehensive crypto regulation in the US.”

Last June, the SEC initiated legal proceedings against Coinbase, alleging infractions of securities law related to the trading of specific cryptocurrencies. The heart of this legal tussle revolves around classifying digital assets as securities, with the SEC applying traditional legal precedents to bolster their arguments.