Coinbase‘s Q1 2024 report reveals impressive financial growth, with total revenue soaring by 72% to $1.6 billion compared to the previous quarter.
The company achieved a remarkable net income of $1.176 billion, marking a staggering 1,588% increase year-over-year (YoY).
This remarkable turnaround contrasts sharply with the $79 million net loss recorded in the same period last year.
Notably, compared to the previous quarter, Coinbase’s net income surged by 331%.
The surge in revenue was driven by increased market share in US spot and derivatives trading, alongside record-high utilization of Coinbase Prime and USDC market capitalization.
International operations also played a significant role in fueling overall growth.
Coinbase attributes the rise in market capitalization to various factors, including the launch of Bitcoin ETFs, which have seen over $11 billion in net inflows in 2024.
Adjusted EBITDA climbed from $324 million in the previous quarter to $1.014 billion, compared to $287 million reported in Q1 last year.
Looking forward, Coinbase foresees continued momentum in Q2 2024, with strong projections in transactions, subscription, and service revenue.
The recent attainment of registration as a restricted dealer from the Canadian Securities Administrators marks a pivotal moment in Coinbase’s global expansion.
This achievement positions Coinbase as the first international crypto exchange to secure registration in Canada.
This milestone adds to Coinbase’s growing list of registrations in key countries worldwide, including France, Spain, Singapore, Italy, Ireland, and the Netherlands.
However, in the United States, a federal judge in Manhattan has allowed the US Securities and Exchange Commission to proceed with a lawsuit against Coinbase, though one claim has been dismissed.
Addressing regulatory challenges, Coinbase notes a shift among key leaders in Washington DC toward stablecoin legislation, signaling potential broader crypto legislation in the US.
The SEC initiated legal action against Coinbase last June, alleging violations of securities regulations related to certain crypto token trading.
The dispute revolves around the classification of crypto assets as securities, with the SEC drawing on established legal precedents to support its case.