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Coinbase Q4 Earnings
Michael Blake
February 19, 2024
Market Update - February 19th, 2024
Top News Headlines
Top Crypto Prices by Market Cap.
1. Bitcoin $51,690.43 7D 3.1% | 6. Cardano $0.630 7D 12.4% |
Source: Coingecko Price Feed, Feb. 19th 2024, 9:15pm EST. Data excludes Lido Staked Ether, and stablecoins USDC and USDT.
Spotlight: Coinbase Q4 Earnings
In case you missed it, U.S. based crypto exchange Coinbase reported their Q4 ‘23 earnings after markets closed this past Thursday.
After a resounding beat of expectations, ($905M in reported net revenue vs. $866M expected), the $COIN stock price is now up 27% over the past five days and up 128% over the past six months.
Key Takeaway #1: Retail Trading is on the Rise
Retail volumes grew by 164% for the quarter, much higher than institutional volumes at 92%. This retail volume growth was the key reason for Coinbase’s outperformance over our estimated revenues.
Retail contributed 19% to the trading volumes over Q4, compared to 14% in Q3.
Retail growth may be due to the price rise in more retail-focused assets like younger Layer-1s like SOL and AVAX and meme coins like BONK.
Key Takeaway #2: Coinbase Dominates In Custody
Coinbase is among the oldest and most compliant crypto exchanges. It now provides custody to assets worth almost $200 billion for its users - 3.5 times the total crypto onchain TVL.
Coinbase is also the custodian for eight of the eleven approved spot Bitcoin ETFs and provides custody for 90% of the total $36 billion ETF assets. Coinbase also services the ETF business by facilitating trading and financing.
Key Takeaway #3: The Future is Onchain
Coinbase became the first public company to make their quarterly earnings report available to be minted as an NFT on the companies native blockchain, $BASE.
The real value behind this initiative is to further ingrain the future of blockchain technology into the minds of the public and Wall Street analysts - many of whom upgraded their $COIN price targets after this recent earnings report.
Key Takeaway #4: Crypto Payments will be Huge
Coinbase believes stablecoin payments represent a huge opportunity in the years to come and the company just launched free USDC payments on Base in December 2023.
Coinbase is also a key investor in CIRCLE, the creator of $USDC which is planning its own IPO later this year.
2023 turned out to be a relatively strong year for Coinbase despite numerous macro headwinds. With the recent surge in digital asset interest to start 2024 … Q1 Earnings this May should be just as exciting!
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