Coinbase sales rose to $954M in Q4 amid market bounce

Coinbase reported a surge in its revenue in the fourth quarter of the previous year, that is, 2023. The revenue jumped to $954 million, with trading volume up to $154 billion. That includes the institutional volume of $125 billion. The surge came amid the market rebound. Most of it is credited to the strong speculation for the approval of Bitcoin ETF applications.

Transaction revenues came to $529 million, an increase of 83% from the previous quarter. As for the revenue rise, it reflects a positive revival of 41% quarter-over-quarter. The net income held Coinbase on a strong foot to the extent that it made the last quarter the first in the series to have positivity. Figures for the same came to $273 million.

Adjusted EBITDA held an upper hand of 69% in comparison to the previous quarter, delivering a stat worth $305 million. The number makes up for earnings before interest, taxes, depreciation, and amortization. A positive EBITDA is the fourth consecutive installment for the quarter.

Trading volume for customers and institutions increased 164% and 92%, respectively, bouncing to $29 billion and $125 billion in the same order. Again, the comparison is with the previous quarter. There was a slight rise in stock price and revenue from subscriptions and services of 3.3% and 12%, respectively. The rise in stock dates to this Thursday.

Analysts had predicted a rise in trading volume since there were estimates to support the assumption that crypto prices would surge in late 2023. The crypto exchange platform reflected that position and is now poised to go stronger in the times to come. Bitcoin is gaining traction despite rallying back to a value of less than $52,000. As a more practical milestone, the safety margin rests at $50,000, or $48,000.

Its prices continue to dance around the $52k mark, ensuring that it stays consistent instead of going all the way down. GBTC’s selling pressure has cooled down. Numbers have not gone to zero, but the ease has brought convenience to the market.

Bitcoin takes center stage every time Coinbase hosts discussions because its performance is still closely tied to how Bitcoin moves on the graph. Launched in 2012, Coinbase has aimed to facilitate the buying and selling activities of Bitcoin without a gap in the decade.

The tables could turn since Coinbase has expanded its horizons by partnering with Circle. Some notable figures for Coinbase from the third quarter show that transaction revenue was down by 12% to $289 million in comparison to the previous quarter. That did not hamper the EBITDA’s positive approach, which bagged a value of $181 million for the third straight quarter.

Upcoming numbers in 2024 could be better and more positive, considering Bitcoin is moving on a positive trajectory. Investors are exploring their holdings of BTC, and Coinbase is a go-to place for them for transactions.