Coinbase shares jumped 8.44% on Thursday, February 13, closing at $298.11 after the company reported its strongest quarterly revenue in three years.
Coinbase Stock Perfromance. Source: Google Finance
The cryptocurrency exchange posted $2.3 billion in revenue for Q4 2024, a 138% increase from the previous year, surpassing analysts’ expectations of $1.88 billion. Net income soared to $1.3 billion, while earnings per share (EPS) came in at $4.68—well above FactSet’s $2.11 estimate and LSEG’s $1.81 forecast.
Coinbase revenue as of Q4 Source: Coinbase’s Q4 earnings report
This growth was driven by a surge in transaction revenue, which hit $1.6 billion in Q4—up 172% from the previous quarter. Additionally, subscription and services revenue climbed to $641 million, reflecting continued expansion beyond trading fees.
Coinbase attributed its strong performance to heightened trading activity and a shifting regulatory landscape.
“Zooming out, the last few months have demonstrated a sea change in the regulatory environment, unlocking new opportunities for Coinbase and the crypto industry,” the company stated.
Looking ahead, Coinbase remains optimistic, describing recent regulatory changes under the Trump administration as the “dawn of a new era for crypto.”
The company reiterated its focus on innovation, stating it will “double down on what we’ve always focused on: building.” Key priorities include driving crypto adoption, expanding its layer-2 network, Base, and scaling crypto payments services.
Despite its strong performance, stablecoin transaction fees declined 9% from the previous quarter, falling to $226 million. However, Coinbase remains confident that strategic partnerships and new product offerings will help offset this decline. The company sees an “unprecedented opportunity” on the horizon, contingent on favourable market conditions and regulatory developments.
Meanwhile, Coinbase has secured approval from the UK’s Financial Conduct Authority (FCA), allowing its subsidiary, CB Payments Ltd., to offer cryptocurrency services directly. Previously, CB Payments Ltd. only facilitated transactions through other Coinbase entities.
The approval follows a period of intense regulatory scrutiny over its activity in the county. In July 2024, the FCA investigated CB Payments Ltd. over its onboarding practices for high-risk customers, leading to a £3.5 million fine for compliance breaches.
In response, Coinbase has implemented stricter compliance measures. Now, with this new approval, CB Payments Ltd. can operate independently, providing both fiat and crypto services in the U.K.
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