14.02.2025 04:06

Coinbase, the leading cryptocurrency exchange in the United States, has stunned Wall Street with its fourth-quarter earnings report, revealing an unprecedented surge in revenue. A staggering 130% year-over-year increase propelled revenue to a remarkable $2.27 billion, significantly exceeding analyst predictions of $1.88 billion, according to LSEG data. This exceptional performance translates to a robust net income of $1.3 billion, or $4.68 per share—a considerable leap from the $273 million ($1.04 per share) reported in the same period last year.

This phenomenal growth can be attributed primarily to a post-election crypto rally, characterized by soaring prices and dramatically increased trading volume. Transaction revenue alone skyrocketed to $1.56 billion, more than doubling the previous year's figure and surpassing even the most optimistic Wall Street projections of $1.29 billion. Fueling this remarkable increase was a breathtaking 185% year-over-year jump in trading volume, reaching an astounding $439 billion. This surge was predominantly driven by retail investors, with consumer trading volume experiencing a phenomenal 224% increase, while institutional trading also saw significant growth at 176%. Following the announcement, Coinbase shares experienced a further 2% increase in after-hours trading.

Coinbase's outstanding performance reflects the combined impact of elevated cryptocurrency prices and heightened market volatility, as acknowledged in their shareholder letter. The company specifically highlighted two pivotal events as catalysts: the introduction of Bitcoin ETFs in the first quarter of 2024 and the election of a pro-crypto President and Congress in the final quarter of the year. These events fostered optimism regarding regulatory clarity, resulting in a substantial increase in spot cryptocurrency trading.

While Wall Street anticipated robust results, Coinbase's actual earnings surpassed all expectations. The reported earnings per share of $4.68 dramatically outperformed the consensus estimate of $1.81, underscoring the exceptional acceleration in trading activity during the final months of 2024. Preceding Coinbase’s announcement, Robinhood’s earnings provided a compelling preview of the explosive growth in the cryptocurrency sector, showcasing a 700% increase in crypto trading revenue, hinting at the extraordinary results to come from Coinbase and its competitors.