TL;DR
- Coinbase reports profits for the first time in two years, with a net income of $905 million in the fourth quarter of 2023, a 45.2% increase compared to the previous quarter.
- The exchange’s net profit for the same period was $273 million, marking an important milestone after recording losses in the previous quarter.
- The cryptocurrency platform’s stocks experienced a 3% increase in the last 24 hours, reaching $165.67, reflecting a positive market reaction to the profit announcement and positive performance over the last six months.
Coinbase, one of the leading cryptocurrency exchange platforms, has announced profits for the first time in two years. In the fourth quarter of 2023, the company recorded a net income of $905 million, representing a significant increase of 45.2% compared to the previous quarter. These profits exceeded analysts’ expectations, who had predicted revenues of around $825 million for that period.
After registering a net loss of $2 million in the previous quarter, the company now reports a net profit of $273 million for the fourth quarter of 2023. This change marked an important milestone for Coinbase, as it was the first time in two years that the company reported profits. Additionally, the earnings per share (EPS) stood at $1.04, compared to a loss per share of $2.46 from the previous year, which also exceeded analysts’ expectations, who expected Coinbase to report losses.
The market’s reaction to this announcement was positive. Coinbase’s stocks experienced a 3% increase in the last 24 hours, reaching $165.67. This upward trend has also been reflected in Coinbase’s stock performance over the last six months, during which they have increased by more than 129%.
The New Bullish Trends in the Market Are Catapulting Coinbase to the Sky
Coinbase’s financial success in 2023 is largely attributed to the changing cryptocurrency market landscape. While 2022 was marked by a bearish market trend, last year saw a shift towards a bullish trend, resulting in a significant increase in trading volume and Coinbase’s revenues. Additionally, the company managed to reduce its operating costs by almost half, further contributing to its profits.
After two years of losses, the platform has demonstrated its ability to adapt to the changing crypto industry and generate significant profits for its shareholders. It is vital to closely monitor its evolution and that of its stocks to have a broader view of its immediate future.
