Coinbase exceeded profit forecasts for Q4 on Thursday as heightened trading in Bitcoin and other digital tokens followed the US election.
The operator of the largest US crypto trading platform reported a net income of $1.3b or $4.68 per share—up significantly from the $273m, or $1.04 per share, recorded in the same quarter last year.
Donald Trump has pledged to turn the US into the “crypto capital of the planet.” In pursuit of this vision, he has filled key government roles with digital currency advocates.
For instance, he appointed Paul Atkins—a well-known supporter of cryptocurrencies—to lead the Securities and Exchange Commission.
This move sharply contrasts with former SEC Chair Gary Gensler’s “Wild West” depiction of the crypto industry. Moreover, this shift suggests a more crypto-friendly regulatory stance, potentially paving the way for increased blockchain innovation and investment in the US.
“We’re really entering a golden age for crypto here,” CEO Brian Armstrong during the earnings call. “The opportunity in front of us is unprecedented to update the financial system and increase economic freedom around the world.”
“The regulatory overhang is lifting. Governments are leaning in, and we’re shaping the next chapter of crypto from trading to payments to consumer apps and beyond. 2025 is going to be a very good year,” he added.
Coinbase Posts $2.3B Quarterly Revenue with Trading Still Dominating
Coinbase reported quarterly revenue of $2.3b, marking a substantial 140% jump from the $953.8m recorded during the same period last year. Meanwhile, transaction revenue surged to $1.56b—more than double the previous figure and exceeding analysts’ predictions of $1.29b.
Additionally, the company generated $750m in trading revenue up to Feb. 11 and now expects trading revenue to represent a mid- to high-teens percentage of net revenue this quarter.
While the exchange is working to diversify its revenue streams beyond trading, trading still comprised 68.5% of its total revenue in Q4, primarily fueled by retail trader activity.
Source: Coinbase
New Asset Launches and Platform Upgrades Drive 24% MTU Increase
During the quarter, Coinbase onboarded 13 new assets, including trending meme coins like PEPE and WIF, while also focusing on enhancing both the trading experience and platform stability. As a result, Monthly Transacting Users (MTUs) surged by nearly 24% to reach 9.7m.
Notably, almost half of Coinbase’s trading customers in Q4 were either newcomers or returning users after a year-long absence.
On a broader scale, the company’s subscription and services revenue for 2024 climbed to $2.3b—a 64% year-over-year increase and roughly 4.5 times the level seen during the 2021 bull market.
This growth was driven primarily by blockchain rewards, stablecoin transactions and the Coinbase One subscription service. Specifically, in the fourth quarter, subscription and services revenue rose to $641m, marking a 15% increase from the previous quarter.
USDC Emerged As Fastest-Growing Stablecoin
Coinbase’s stablecoin revenue declined by 9% quarter-over-quarter to $226 million in Q4, yet it climbed 31% year-over-year to reach $910m for the full year.
In 2024, USDC emerged as the fastest-growing major stablecoin. Moreover, the fourth quarter saw revenue gains driven by a notable increase in both the average market cap of USDC and its presence in our product offerings. However, these gains were partially offset by lower effective interest rates and new entrants in the USDC ecosystem during Q4.
During the earnings call, Brian Armstrong reiterated that the company’s “stretch goal is to make USDC the number one stablecoin.”
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