Coinbase reports first-ever profit, boosting investor sentiment
Coinbase announced better-than-expected quarterly and full-year results, signaling positive developments in the crypto market. The company reported its first-ever profit, a significant improvement from the previous year’s loss. This news resulted in a 15% increase in Coinbase’s shares, indicating growing investor confidence.
Improved performance and strong trading volumes
In the three months ended December 31, Coinbase recorded a profit of $273.4 million, compared to a loss of $557 million the previous year. Additionally, the company experienced a 64% increase in transaction revenue, reaching $529.3 million during the same period.
Positive outlook for Coinbase
Coinbase expects its subscription and services division to perform well in the first quarter, with estimated sales between $410 million and $480 million. This projection surpasses analysts’ estimates of $356.22 million.
Decline in transaction revenue and trading volume
Although Coinbase achieved profitability, its transaction revenue in 2023 decreased by 36% compared to the previous year. Furthermore, total trading volume declined by nearly 44%. These metrics will be closely monitored by investors to assess Coinbase’s cash flow situation in the future.
Implications for Bitcoin and Ethereum
As the largest crypto firm listed on Wall Street, Coinbase’s positive results indicate favorable market conditions for digital assets. This outlook suggests improved trading conditions for Bitcoin and Ethereum, as increased trading volumes benefit both cryptocurrencies.
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