Coinbase’s net profit exceeds $1 billion

A major American cryptocurrency platform released its first quarter results on Thursday evening. The numbers are coming in at the upper end of expectations, with net income rising very sharply to $1.17 billion, while the company suffered losses of around $80 million at the same time last year. Revenue was $1.58 billion, more than double what was seen in the first quarter of 2023.

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These results are mainly the result of a surge in the cryptocurrency market just before the April 20 halving. “In the first quarter, we continued to see significant growth in our institutional business through Coinbase Prime. We believe growth is largely driven by positive market momentum, driven in part by the launch of Bitcoin ETFs, which have seen over $11 billion in net inflows so far in 2024.

And to add: “Childcare revenue reached $32 million, up 64% quarter-on-quarter. The main driver of the growth was the rise in the prices of crypto-assets. We also benefited from the collection (…), mainly due to our role as manager of 8 of the 11 Bitcoin ETFs. We ended the first quarter with $171 billion in assets under custody. »

In January, the US market police allowed the marketing of “spot” Bitcoin ETFs (point), although until then he had systematically refused requests.

However, Coinbase’s share price is not really responding in pre-market trading, even hinting at a small drop. This publication comes, needless to say, in the midst of a Bitcoin correction. The most well-known cryptocurrency has fallen 18% since its most recent peak in mid-March. It is trading at $59,600 this morning.

Remy Demichelis

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