Coinbase Global marked a significant milestone on Thursday as it unveiled its inaugural quarterly profit since 2021, propelled by robust trading volumes fueled by a resurgence of interest in cryptocurrencies. This achievement triggered a notable uptick in its shares, surging nearly 13% after the closing bell.
The resurgence in investor enthusiasm for cryptocurrencies gained momentum in recent months, primarily fueled by the highly anticipated approval of the first spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC).
This regulatory green light breathed new life into the crypto market, sparking increased activity and driving trading volumes.
Although the approval of the ETFs occurred only in January, the anticipation surrounding the SEC's decision acted as a catalyst, propelling bitcoin's price a remarkable 57% higher during the final quarter of 2023.
This surge in bitcoin's value significantly contributed to a substantial 64% jump in transaction revenue for Coinbase, reaching a total of $529.3 million in the fourth quarter.
Michael Elliott, an equity research analyst at CFRA Research, expressed admiration for Coinbase's performance, citing that the results surpassed both internal and Wall Street expectations.
The exceptional performance underscored the company's resilience and ability to capitalize on the burgeoning interest in cryptocurrencies.
Looking ahead, Coinbase anticipates a robust first quarter for its subscription and services unit, which encompasses various businesses beyond trading.
This optimistic outlook reflects the company's confidence in its diversified revenue streams and its positioning to capitalize on evolving trends within the cryptocurrency ecosystem.
16.02.2024
Comments