Coinbase Revenue Expected to Rise in Q4 2023
Despite expectations of a 40% increase in Coinbase revenue for Q4 2023, ARK Invest has chosen to sell over $33.6 million worth of COIN shares. However, this hasn’t stopped the surge in the price of Coinbase shares, which have risen by almost 30% in anticipation of positive news from the company’s executives.
Analysts’ Estimates for Coinbase Revenue
Messari analysts estimate that Coinbase will generate $866 million in revenue for Q4 2023, attributing this growth to the exchange’s strong performance during the bear market. On the other hand, Wall Street analysts project revenues of $731.94 million for the same quarter, reflecting a 16.3% increase from Q4 2022.
ARK Invest Sells COIN Shares
ARK Invest has sold more than 214,000 COIN shares across three different funds, totaling over $30 million. This is the first time the firm has engaged in selling activity since January. Despite this move, Coinbase shares continue to rise.
Milestones and Positive Outlook
The recent surge in Coinbase shares can be attributed to two significant milestones: the approval of spot Bitcoin ETFs and Bitcoin’s performance. As the custodian for eight out of the 11 approved Bitcoin ETFs, Coinbase is expected to benefit from increased revenue in the short term. Additionally, Coinbase is part of a group of crypto-friendly companies that tend to correlate with Bitcoin’s price movement.
Conclusion
In conclusion, while ARK Invest has chosen to sell a significant amount of COIN shares, Coinbase is still experiencing a surge in its stock price ahead of its fourth-quarter financial results. Analysts have high expectations for Coinbase’s revenue in Q4 2023, and the recent milestones in the cryptocurrency market have further contributed to the positive outlook for the exchange.
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