Crypto exchange Coinbase announces a robust rebound in the Coinbase Q1 earnings 2024, buoyed by improved market performance and the introduction of Bitcoin exchange-traded funds (ETFs).
Financial Highlights
In the first quarter, Coinbase recorded $1.6 billion in total revenue and $1.2 billion in net income, achieving $1 billion in Adjusted EBITDA. Notably, this marks a significant increase from its adjusted EBITDA of $977.5 million in 2023. The net Coinbase Q1 earnings benefited from $737 million in pre-tax unrealized gains on crypto assets.
Capital and Liabilities
Ending the quarter with $7.1 billion in capital, Coinbase saw an increase in total liabilities from $200.7 million in Q1 2023 to $339.9 million in Q1 2024. The firm raised $1.1 billion in net cash through the sale of 2030 convertible notes.
Revenue Breakdown
Revenue from consumer transactions surged by 99% quarter over quarter, reaching $935 million. Trading volume also saw a significant increase, totaling $56 billion, up 93% in the quarter. Institutional transactions generated $85 million in revenue, representing a 133% increase quarter over quarter. Trading volume on Coinbase Prime, the platform for institutional clients, grew by 105% to $256 billion.
“Our institutional platform, Coinbase Prime, hit all-time highs in trading volume and the number of active clients in Q1. […] The bitcoin ETFs – combined with strong market conditions in Q1 – unlocked a flywheel of customer engagement across this more robust product suite. In fact, nearly 40% of institutional clients engaged with at least 3 products in Q1.”
Custodial Services and Assets Under Custody
Revenue from custodial services experienced a notable 64% increase, amounting to $32 million in the first quarter. This growth was primarily driven by crypto asset prices and revenue from Bitcoin ETFs. Coinbase serves as custodian for eight of the 11 newly launched BTC funds. Assets under Coinbase’s custody closed the quarter at $171 billion.
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