Coinbase released its Q1 2024 report, showcasing a massive 72% QoQ increase in total revenue to $1.6 billion. This increase was accompanied by a significant net income of $1,176 billion, representing an increase of 1,588% year over year. This figure represents a turnaround from a net loss of $79 million in the same period last year. Compared to the last quarter, Coinbase's net income increased by 331%.
The cryptocurrency exchange saw an uptick in market share across spot and derivatives trading in the US, along with reaching record highs in Coinbase Prime usage and USDC market cap. According to the company, prominent international operations contributed significantly to the overall growth.
Impact of Bitcoin ETFs
Coinbase stated: “Although we cannot attribute the increase in market cap to a specific driver, we believe this increase was influenced by a variety of factors, such as the launch of Bitcoin ETFs, which have seen net inflows of over $11 billion to date in Year 2024.”
Adjusted EBITDA rose from $324 million in the prior-year quarter to $1.014 billion, compared to $287 million in the year-ago quarter. Looking ahead, Coinbase expects momentum to continue into Q2 2024, with strong expectations in transactions, subscriptions, and services revenue.
Recently, the cryptocurrency exchange obtained registration as a restricted trader from Canadian securities officials. This milestone marks an important moment in Coinbase's global expansion efforts, making it the first international cryptocurrency exchange to obtain registration in Canada.
The approval in Canada adds to Coinbase's growing list of registrations in key countries around the world, including France, Spain, Singapore, Italy, Ireland and the Netherlands. Meanwhile, in the US, a federal judge in Manhattan recently allowed the US Securities and Exchange Commission to move forward with a lawsuit against Coinbase, albeit dismissing one suit.
Overcoming regulatory obstacles
Speaking about these regulatory challenges, Coinbase said: “On the legislative front, we are seeing gradual change among key leaders in Washington, D.C. that is aligned with the need for stablecoin legislation, which we believe is a hopeful sign that broader cryptocurrency legislation will eventually materialize.” End up in the United States.”
The Securities and Exchange Commission sued Coinbase last June for violations of securities regulations related to the trading of certain cryptocurrency tokens. Central to the legal dispute is the interpretation of cryptoassets as securities, with the SEC relying on established legal precedents to support its case.
This article was written by Jared Kirroy at www.financemagnates.com.