Coinbase has released its first quarterly report for 2024, showing a 72% quarter-over-quarter increase in total revenue to $1.6 billion. This growth was accompanied by significant net income of $1,176 billion, representing a 1,588% year-over-year increase. This figure represents a turnaround from a net loss of $79 million in the same period last year. Compared to last quarter, Coinbase’s net income increased 331%.
The cryptocurrency exchange experienced growth in its market share in US spot and derivatives trading, as well as record highs in Coinbase Prime usage and USDC market capitalization. According to the company, notable international operations contributed significantly to the overall growth.
Impact of Bitcoin ETFs
Coinbase noted: “We cannot attribute the growth in market capitalization to one specific driver, but we believe this growth has been influenced by a variety of factors, such as the launch of Bitcoin ETFs, which have experienced net inflows of over $11 billion so far. 2024 in.”
Adjusted EBITDA increased to $1.014 billion from $324 million in the prior quarter, compared to $287 million reported in the prior year’s first quarter. Looking ahead, Coinbase expects continued momentum in Q2 2024, with strong forecasts in transaction, subscription and service revenue.
Recently, the crypto exchange secured registration as a restricted dealer from the Canadian Securities Administrators. This achievement marks a significant moment in Coinbase’s global expansion efforts and marks it as the first international crypto exchange to receive registration in Canada.
The approval in Canada adds to Coinbase’s growing list of registrations in major countries around the world, including France, Spain, Singapore, Italy, Ireland and the Netherlands. Meanwhile, in the United States, a federal judge in Manhattan recently allowed the US Securities and Exchange Commission to pursue a lawsuit against Coinbase, despite dismissing one of the claims.
Navigating regulatory hurdles
Speaking about these regulatory challenges, Coinbase said: “On the legislative front, we are seeing a step change among key leaders in Washington DC aligning the requirements for stablecoin legislation, which we believe is a hopeful sign that comprehensive crypto legislation will eventually become a reality in the US.”
The SEC sued Coinbase last June for violating securities regulations related to the trading of certain crypto tokens. The interpretation of crypto assets as securities has been at the center of a legal dispute, with the SEC relying on established legal precedent to support its case.
This article was written by Jared Kirui at www.financemagnates.com.