COIN Soars Over 13% as Coinbase Floors Q4 Estimates

The shares of American-based crypto exchange Coinbase soared over 13% post-market as its Q4 fiscal report showed it floored Wall Street estimates. The uptick from the $165.67 closing price to $188.18 came as it announced a quarterly gain of $964 million, surpassing the predicted $826.1 million.

Coinbase’s quarterly financial statement also showed significant progress across boards, including almost doubled transaction revenue. The exchange generated $529.3 million from transactions, 183% up from the $288.6 million from Q3, 2023.

Coinbase’s revenues profited massively from the bullish narrative in the crypto market late last year, as the sector rose on the blistering hopes of the now-approved exchange-traded funds (ETF) by the Securities and Exchange Commission (SEC). The exchange was also in the limelight, as most asset managers who applied for the ETF product chose it as their custodian.

ETF Blew Quarterly Trading Volume Up

As reported, Coinbase saw a 92% quarter-to-quarter increase in institutional trading volume and made $37 million from such transactions. The exchange noted that the ETF perspective attracted institutional attention, leading to a significant improvement. 

Notably, Coinbase also ripped the rewards of what were troubling times from its major competitors, Binance and FTX. Trading volume changed hands significantly from Binance to Coinbase during its regulatory issues with the SEC and the Commodity Futures Trading Commission (CFTC), and the US-based exchange’s shares soared 60% the month FTX’s Sam Bankman-Fried and Binance’s Changpeng Zha faced jail charges.

A Good 2023 for Coinbase

“In 2023, we saw our operational rigor pay off. We achieved our financial goals, launched new innovative products, strengthened our competitive position, and doubled down on our efforts to create momentum for a workable regulatory framework for crypto in the US,” the exchange stated in the quarterly financial report.

Aside from earning $1.04 per share as against the predicted $0.02, Coinbase also made significant progress in its pursuit of crypto regulation with the SEC. The exchange set the pace for the recent motion to dismiss charges by the SEC against the firm despite the regulator’s efforts to keep the case alive.

Coinbase expects a better 2024, with statements to reduce marketing expenses further and increase technology and development expenditures. The anticipated bull run and the halving event are also significant factors that might make Coinbase’s revenues even better.