- Coinbase has reported revenues and losses for the fourth quarter of 2023.
- The firm’s total revenue rose 41% to $954 million.
- Coinbase also reported a net income of $273 million.
Cryptocurrency exchange Coinbase has released its financial report for the fourth quarter of 2023. Compared to the previous reporting period, the company’s revenues increased by 41% to $954 million.
Our Q4’23 and full-year 2023 update is in.
Read the full shareholder letter and tune into our earnings call: https://t.co/fod43YZKqw pic.twitter.com/DJ2NhFyfdU
- Coinbase 🛡 (@coinbase) February 15, 2024
Most of Coinbase’s metrics rose amid a market recovery. Trading volume in the fourth quarter totaled $154 billion, $125 billion of which came from the institutional market.
In addition, the company’s transaction revenue rose to $529 million for the three months. That’s an 83% increase from the third quarter, the report said.
Coinbase also reported net income of $273 million, which was well above analysts’ expectations.
The firm earned $1.04 per share, beating experts’ estimates of $0.02. Analysts had forecast revenue of $826 million, but Coinbase gave a different figure of $954 million.
“We are very pleased with the results. The operational rigor that we put in place at the beginning of the year has really paid off through 2023,” said Anil Gupta, vice president of investor relations at Coinbase.
In addition to higher trading volumes, Coinbase’s subscription and services revenue rose to $375 million in the fourth quarter, up 12% from the third quarter. This line of business includes revenue from stablecoins and commissions, as well as network usage fees and interest income, according to the text of the report.
Earlier we reported that Coinbase plans to charge a commission for converting USDC stablecoin into US dollars. True, it was about large transactions from $75 million.
As of 2023, Coinbase’s Tier 2 Base network has become one of the largest and fastest growing ecosystems since 2020. As of February 16, 2024, the total blocked value of assets (TVL) in the Base network exceeded $421 million, according to DeFi Llama:
As a reminder, in early August, developers announced the launch of the Base mainnet. A few days after the launch, the number of active users of the network exceeded 100,000.
According to the data provided, more than 400 million people use cryptocurrencies. The company noted that 8 out of 11 spot bitcoin-ETFs in the US are Coinbase partners.
Notably, since the beginning of 2023, the company’s shares have grown by more than 300% and reached a 20-month high.
