Coinbase Global, the largest US cryptocurrency exchange, posted a significant surge in revenue and profit last quarter, fueled by a post-election rally and growing investor optimism about the future of digital assets under the Trump administration.
In its latest earnings report, Coinbase announced revenue of $2.27 billion, a 138% increase from the previous year, while net earnings skyrocketed nearly fivefold to $1.3 billion. The company reported earnings of $4.68 per share, far exceeding analysts’ expectations of $2.11 per share, according to FactSet.
Coinbase’s transaction revenue, a key metric driven by trading activity, rose sharply to $1.6 billion, compared to $529 million last year. This figure surpassed Wall Street estimates of $1.26 billion. Subscription and services revenue also saw substantial growth, climbing 71% to $641 million, ahead of projections.
The company’s strong financial results were driven by a surge in total trading volume, which hit $439 billion—the highest level since late 2021. This growth was fueled by a post-election jump in major cryptocurrencies, with Bitcoin briefly surpassing the $100,000 mark before retreating in February.
Coinbase also reported an increase in its customer base, with 8.4 million monthly transacting users, up by 1 million from the previous year. This expansion reflects the growing mainstream adoption of digital assets and the increased activity from both retail and institutional investors.
Despite the strong earnings report, Coinbase stock experienced some volatility. Shares surged more than 8% on Thursday, reaching $298 before the results were announced, but slipped in premarket trading Friday.
Wall Street analysts remain bullish on Coinbase’s future, with several firms raising their price targets following the strong earnings report.
- H.C. Wainwright increased its target from $255 to $330, citing the positive impact of Trump’s reelection on the crypto industry. The firm expects continued upside in transaction revenue and total revenue.
- Citi raised its price target from $275 to $350, maintaining a buy rating while acknowledging that Coinbase remains a “risk-on” asset. The firm expects continued volatility but sees long-term benefits from potential stablecoin regulatory reforms in 2025.
Coinbase remains optimistic about its future revenue streams. The company reported generating $750 million in transaction revenue through February 11 and expects Q1 subscription and services revenue to range between $685 million and $765 million.
The Wall Street Journal and Investor’s Business Daily contributed to this report.
