Shares of Coinbase (COIN) rose at the end of the week after the crypto exchange reported its fourth-quarter 2023 results.
from Coinbase income report revealed that the exchange posted its first profitable quarter in more than two years, with net income of $273 million, or $1.04 per share.
Speak with BloombergOwen Lau, an analyst at investment bank Oppenheimer & Co., says Coinbase may be changing the narrative that it is an unprofitable company.
“Coinbase has been widely seen as an unprofitable company, and this quarter may change its image going forward… I think the next step is to see if Coinbase can maintain profitability throughout the year.”
Coinbase CEO Brian Armstrong say 2023 has been a “great year” for the company, and that the crypto exchange is in a strong financial position after cutting costs by 45% year over year and increasing revenue.
Armstrong also points to the launch of Coinbase International Exchange, the company’s Ethereum (ETH) layer-2 base, and the exchange’s role as a prominent custodian of Bitcoin (BTC) exchange-traded funds (ETFs) as positive catalysts for Company.
Says Armstrong,
“Tradfi is adopting crypto and this is great for Coinbase. Bitcoin ETFs are now the second largest commodity ETFs in the US (after gold), and we hold approximately 90% of the ~$37 billion in Bitcoin ETF assets. Since the launch of the ETFs, we have seen net inflows into our retail and institutional products (ie no cannibalization).
In 2024, we will focus on increasing trading fee revenue with international expansion and derivatives. We will also focus on increasing the utility of crypto with payments (for example, you can now send USDC for free instantly on Base) and developing Coinbase Wallet into an on-chain Super App. Finally, we will continue to provide regulatory clarity for crypto through the courts, http://standwithcrypto.org, SuperPac contributions, and encouraging legislation in DC.
We are in a strong financial position, our long-term focus on compliance has proven right relative to competition, and we are well positioned to help accelerate cryptocurrency adoption and modernize the global financial system.”
COIN is currently worth $180.28 per share, down slightly from the yearly high of $193.64 it recorded on Friday.
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