Coinbase stock soars – fourth quarter results exceed expectations | CoinDesk JAPAN

Coinbase, a major U.S. cryptocurrency exchange, reported fourth-quarter profit and revenue that exceeded analysts' expectations as it benefited from soaring crypto asset prices.

Earnings per share were $1.04 (approximately 156 yen, at an exchange rate of 150 yen to the dollar), beating the average analyst estimate of $0.02, according to FactSet data. Coinbase said in a statement that its revenue was $953.8 million, also exceeding analysts' expectations of $826.1 million.

Crypto asset price rise accelerates in the fourth quarter

“We are really pleased with the results,” Anil Gupta, vice president of investor relations at Coinbase, said in an interview with CoinDesk. “I was shocked,” he said.

Cryptocurrency prices soared for most of 2023, but the rally accelerated in the fourth quarter as high expectations for a Bitcoin exchange-traded fund (ETF) approved last month revived interest in the digital asset.

As a result, activity on Coinbase also appears to have increased. Transaction volume in the fourth quarter increased by 100% compared to the third quarter. The total amount was 154 billion dollars (approximately 23.1 trillion yen), exceeding the forecast of 142.7 billion dollars.

“Coinbase really has a win-win relationship with ETFs, and I think we're already starting to see the role it plays on the platform,” said Mr. Coinbase provides custody services for eight of the ten physical Bitcoin ETFs, making it a major player in this space.

“Obviously, custody is a relatively small part of the business today, but the great thing about the news about ETFs is that it's energizing the entire sector,” said Gupta. “We're seeing a lot of activity and engagement.”

Stock price rises 13% in aftermarket

Coinbase also posted adjusted EBITDA of $964 million in 2023. The company previously said it expected to post “significant” positive adjusted EBITDA this year. The company expects subscription and services revenue to be approximately $410 million to $480 million in the first quarter of 2024, and has already generated approximately $320 million ( The company generated a profit of approximately 48 billion yen).

Coinbase stock rose about 13% in aftermarket trading after rising about 3% during trading hours. Coinbase stock has fallen about 4% this year, even as Bitcoin (BTC) prices have risen about 23%.

“Our stock's performance has been good, bad and mediocre, and I think the market understands that,'' said Mr. Gupta.

｜Translation and editing: Rinan Hayashi
｜Image: CoinDesk
｜Original text: Coinbase Shares Surge After It Crushes Wall Street Expectations