Crypto exchange Coinbase has reported a strong rebound in the first quarter of 2024, supported by an uptick in market performance and the launch of Bitcoin exchange-traded funds (ETFs).
The exchange posted $1.6 billion in total revenue and $1.2 billion in net income for the first quarter, achieving $1 billion in Adjusted EBITDA — which measures a company’s earnings before interest, taxes, depreciation and amortization. Coinbase’s adjusted EBITDA in 2023 stood at $977.5 million.
According to its earnings release, Coinbase’s net income benefited from $737 million in pre-tax unrealized gains on crypto assets. The firm ended the quarter with $7.1 billion in capital, including $1.1 billion in net cash raised through the sale of 2030 convertible notes.
Total liabilities increased from $200.7 million in the first quarter of 2023 to $339.9 million in 2024.
Revenue from consumer transactions topped $935 million, surging by 99% quarter on quarter. Trading volume totaled $56 billion, up 93% in the quarter, outperforming the United States spot market, which increased 91% over the same period.
Institutional transactions were also up during the quarter, generating revenue of $85 million, representing a 133% increase quarter on quarter. According to the exchange, trading volume on its platform for institutional clients, Coinbase Prime, grew 105% to $256 billion, also outperforming the U.S. spot market.
“Our institutional platform, Coinbase Prime, hit all-time highs in trading volume and the number of active clients in Q1. [...] The bitcoin ETFs – combined with strong market conditions in Q1 – unlocked a flywheel of customer engagement across this more robust product suite. In fact, nearly 40% of institutional clients engaged with at least 3 products in Q1.”
The exchange also posted a 64% jump in revenue from custodial services, reaching $32 million in the first quarter, primarily driven by crypto assets prices and revenue from Bitcoin ETFs. The exchange serves as a custodian for eight of the 11 newly launched BTC funds. Assets under Coinbase’s custody closed the quarter at $171 billion.
Magazine: Deposit risk: What do crypto exchanges really do with your money?
