Coinbase Q1 revenue soars nine times to $1.8 billion

Business Growth

Talk about riding the surge! Coinbase has announced its earnings estimates for the first quarter of 2021, with the company announcing some startling numbers ahead of a public listing next week.

And the numbers show stellar results.

The company says that its estimated revenue for the period is nine times more than the amount generated in the same period last year. In addition, the crypto platform confirmed that it had 56 million verified users, increasing from the 43 million it had at the end of last year.

Coinbase Logo

All this meant that Coinbase saw a whopping 117% quarter-over-quarter increase in monthly transacting users, and they helped the crypto exchange rake in $1.8 billion over the quarter. This is expected to drive a net income of approximately $730 million to $800 million.

The firm revealed all this in its voluntary earnings report ahead of its Nasdaq listing on April 14.

For comparison, active users on Coinbase jumped from 2.8 million in the fourth quarter of 2020 to 6.1 million in the first quarter of 2021. Likewise, trading volume topped $335 billion in Q1 2021, while for all of 2020 it was just $193 billion.

Clearly, this is a business that is riding high as interest in cryptocurrency tracks upward with the price of Bitcoin, Ether, Ripple, and other leading digital assets.

And further showing how solidly Coinbase has cemented itself at the center of this current bull run, the total assets on its platform increased from $90 billion to $223 billion — nearly a 150% increase quarter-over-quarter.

Some $122 billion of these assts were from institutions.

Coinbase CEO Brian Armstrong said during the Tuesday earnings call that the company has immediate future plans on the retail side, and these include adding more assets and giving people more access to decentralized finance (DeFi) applications.

While on the institutional side, the company plans to build out its prime brokerage offering and use its Bison Trails acquisition to create what it calls the Amazon Web Services for crypto.

Lofty!


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