Crypto exchange Coinbase has reported a significant rebound in the first quarter of 2024, propelled by improved market performance and the introduction of Bitcoin exchange-traded funds (ETFs).
Coinbase posted impressive figures, including $1.6 billion in total revenue and $1.2 billion in net income for the first quarter. Notably, it achieved $1 billion in Adjusted EBITDA, surpassing the $977.5 million recorded in 2023.
The exchange’s net income was boosted by $737 million in pre-tax unrealized gains on crypto assets. Additionally, Coinbase ended the quarter with $7.1 billion in capital, with $1.1 billion in net cash raised through the sale of 2030 convertible notes.
Revenue from consumer transactions surged to $935 million, marking a 99% increase quarter-on-quarter, while trading volume reached $56 billion, up 93% from the previous quarter, outperforming the U.S. spot market.
Institutional transactions also saw a substantial uptick, generating $85 million in revenue, representing a 133% increase quarter-on-quarter. Coinbase Prime, the exchange’s platform for institutional clients, experienced a 105% growth in trading volume to $256 billion.
Coinbase Prime witnessed record highs in trading volume and active client numbers in Q1. The launch of Bitcoin ETFs, coupled with favorable market conditions, drove increased customer engagement across multiple product offerings. Nearly 40% of institutional clients engaged with at least three products in Q1.
Revenue from custodial services experienced a notable 64% surge, reaching $32 million in the first quarter. This growth was primarily driven by cryptocurrency asset prices and revenue from Bitcoin ETFs. Coinbase serves as a custodian for eight of the 11 newly launched BTC funds, with assets under its custody totaling $171 billion at the end of the quarter.
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