Coinbase Skyrockets with $1.17 Billion Net Income in Q1: A New Milestone in Crypto Industry
Coinbase reports Q1 net income at $1.17 billion
- Coinbase Global has reported a strong first quarter, with a net income of $1.2 billion.
- The surge in cryptocurrency trading activity, triggered by the introduction of the first U.S.-listed exchange-traded funds (ETFs) tracking bitcoin, contributed significantly to this success.
- CEO Brian Armstrong attributes the company’s financial performance to its lean cost structure and continuous innovation.
Coinbase Global reports a net income of $1.2 billion in Q1, thanks to a surge in cryptocurrency trading activity and the introduction of the first U.S.-listed bitcoin ETFs.
Record Trading Volumes
For the quarter ending March 31, Coinbase reported a net income of $1.2 billion, or $4.84 per share, a major turnaround from a $79 million loss, or $0.34 per share, during the same period last year. This rebound coincides with a bull run in the crypto market following the U.S. Securities and Exchange Commission’s approval of several spot price-based bitcoin ETFs. The buzz around the new ETFs, especially with Coinbase acting as the custodian for major funds like BlackRock’s iShares Bitcoin Trust (IBIT.O), helped push bitcoin prices to record highs above $72,000 in March. This, in turn, led to a strong boost in Coinbase’s trading volumes, which totaled $312 billion in the first quarter, up from $145 billion a year earlier.
Boost in Interest Income
Coinbase has managed to boost its interest income, earning $66.7 million from interest and finance fees in the first quarter, an increase from $43.3 million the previous year. This income primarily comes from USD Coin (USDC), a stablecoin that Coinbase manages with Circle, backed by dollar and equivalent assets.
