Coinbase Global (COIN) has benefitted from the boost in the cryptocurrency trading market in Q1 2024, leading it to a second consecutive quarterly profit.
Coinbase Makes Second Quarterly Profit In A Row
The crypto exchange platform saw net revenue climb by 115% compared to Q1 2023. Its net income also rose, with $1.17bn the highest it has reached in the last nine quarters. It was the firm’s second positive quarterly earnings report since the crypto boom petered out in 2022. Transaction revenue rose to $1.07bn, which was close to being a 300% increase from Q1 2023.
The arrival of several bitcoin ETFs is credited with helping to get the crypto market back on track in 2024. These financial products brought new money into the market and helped to make cryptocurrencies reach a wider, more mainstream audience. Crypto trading reached record numbers of global trades since 2021, with a 68% boost from last year’s numbers.
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Coinbase recently announced a $15m TV ad campaign during the NBA playoffs. Coinbase’s vice president of engineering Jesse Pollak said that “crypto is a solve for Americans who are fed up with the middlemen taking a bite every time they order and pay for pizza”.
The Q1 results didn’t help the COIN share price rise though, as it dropped by up to 4% in Thursday’s after-hours trading. This means that the shares are still over 30% more valuable than at the start of 2024, but almost 40% lower than the highest point COIN reached at the end of 2021.
Analysts may have been disappointed that Coinbase didn’t gain more customers from rival Binance after CEO Changpeng Zhao was sentenced to three months in prison.
