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Coinbase has reported an impressive Q4, with revenue surging 130% to $2.27 billion and an even more bullish outlook.
In its Shareholder Letter, Coinbase reported net income of $1.3 billion, compared to $273 million in the same quarter last year. Transaction revenue also more than doubled to $1.56 billion while trading volume saw a 185% rise to $439 billion. Consumer trading volume rose 224% while institutional trading volume increased 176%.
“The two primary factors underpinning these stronger macroeconomic factors were the launch of the bitcoin ETF products in Q1′24, and the election of a pro-crypto President and Congress in Q4′24 and the associated expectation of regulatory clarity — both of which resulted in elevated spot crypto trading activity,” Coinbase stated.
Coinbase attributed its financial achievements to "unprecedented" opportunities presented by US President Donald Trump's administration and signalled its intent to actively contribute to crypto regulation as a key player in shaping policy. CEO Brian Armstrong has been working with Trump's team and is keen to work with new frameworks.
"We believe the opportunity in front of us right now is unprecedented, and that we are well positioned to meet the moment," the exchange said.
The Shareholder Letter also addressed its global expansion as it makes inroads into Argentina and establishes connections in India, as well as striving to securing a MiCA license in the EU.
Earlier this month, Coinbase received regulatory approval to expand its digital asset services in the UK. The exchange secured a Virtual Asset Service Provider (VASP) license from the UK's Financial Conduct Authority (FCA), making Coinbase the largest registered digital assets player in the UK.
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“This is a critical registration to cement our strong position in the UK and unlock our ambitious expansion plans,” a Coinbase stated at the time.
As well as global expansion, Coinbase is also looking to diversify its revenue streams away from trading, which comprises 68.5% of its total revenue. Between $685 million and $765 million is expected to come from its subscription and services business, which includes stablecoins, staking, custody and its Coinbase One product.
Additionally, Coinbase expects Circle's USDC, which it has a revenue share agreement with, to increase sales and marketing expenses. “We can drive utility in this where we can drive more trading pairs on our own platforms denominated in USDC, which drives the liquidity, and the more liquidity you have in any asset, that drives more adoption,” Chief Financial Officer Alesia Haas said.
After releasing its earnings, Coinbase saw its stock price jump as high as 10%.
