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Coinbase has posted estimate-beating earnings in its Q1 report on the back of Bitcoin's stellar rally.
Revenue came in at $1.64 billion, exceeding analysts' expectations of $1.34 billion. Net income totalled $1.18 billion, compared to a $78.9 million loss from last year.
Last quarter, Coinbase posted its first profit in two years, reporting revenue of $953.8 million.
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Coinbase's Q1 profit reflects a $650 million mark-to-market gain on cryptocurrency assets held for investment as per the firm's adoption of revised accounting standards.
Revenue from consumer transactions more than doubled year on year, reaching $935 million for the quarter. Transaction revenue nearly tripled to $1.08 billion this quarter.
Its results come as Bitcoin broke its all-time high last quarter, surpassing the $73K mark in March.
Coinbase's stock price rose 9% ahead of its earning report but has slipped 2% in after-hours trading.
Bitcoin mining firm Riot Platforms also reported a company record for net income in Q1 2024 but failed to meet analysts' expectations for revenue.
In its most recent earnings announcement, Riot's net income came in at a record $211.8 million, marking a 1,000% increase from the same time last year.
Mining revenue also jumped 55.4% year on year due to Bitcoin's 131% increase in price. However, Riot's total revenue of $79.3 million fell 14% short of estimates.
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Meanwhile, in a sign of continued financial strength, stablecoin issuer Tether has announced a record-breaking profit of $4.52 billion for the first quarter of 2024 – a 61% increase from the previous quarter.
This impressive performance is accompanied by significant growth in Tether's reserves, which now exceed $90 billion, according to an announcement on Wednesday.
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