Shares of U.S. crypto exchange Coinbase experienced a significant surge, outperforming Wall Street’s forecasts with a notable increase in transaction revenue, which doubled in the last quarter as the crypto market experienced an upturn. The crypto exchange surpassed analysts’ predictions for Q4/2023, with earnings of $1.04 per share, a stark contrast to the anticipated $0.02 per share. Coinbase‘s share price jumped by 14% to $189.36 in the after-hours trading session on Thursday.
Furthermore, its revenue reached $953.8 million, exceeding the expected $826.1 million, as announced by the company. Coinbase also reported an adjusted EBITDA of $964 million for 2023, exceeding its forecast for “meaningful” positive adjusted EBITDA. Looking ahead to the first quarter of 2024, the company anticipates generating between $410 million and $480 million in subscription and service revenue, having already secured approximately $320 million as of February 13.
Since its inception in 2012 by Brian Armstrong and Fred Ehrsam, Coinbase has established itself as a leading figure in the crypto exchange domain. Its transition to a public entity on the Nasdaq stock exchange was marked by a direct stock listing on April 14, 2021, with Nasdaq setting a reference price at $250 per share, valuing the company at approximately $47 billion. By the close of its debut trading day, Coinbase‘s shares were priced at $328.28 each. It is still a far way to go to see this share price again.
Anil Gupta, Coinbase‘s VP of Investor Relations, expressed satisfaction with the company’s performance, attributing the success to the operational discipline implemented early in the year. The surge in cryptocurrency prices throughout 2023, especially in the fourth quarter, was fueled by optimistic expectations for bitcoin ETFs, which received approval last month. This optimism significantly contributed to increased activity on Coinbase, with trading volume during the quarter doubling compared to the third quarter, reaching $154 billion, surpassing the $142.7 billion forecast.
Gupta highlighted the positive impact of ETFs on Coinbase, noting the platform’s role in providing custodial services for eight of the ten spot bitcoin ETFs.
