Coinbase rides the crypto boom to hit over US$1 billion in revenue

Summary

  • Coinbase revenue jumped about 10 times during the March quarter, fuelled by the surge in digital asset prices.
  • The crypto firm clocked US$ 5 million in profit during the quarter.
  • Coinbase added about 13 million new users to its platform.

Coinbase Global Inc (NASDAQ:COIN), a US-based holding company for an cryptocurrency exchange platform by the same name, has reported 9.45 times jump in its revenue as it surged past the $US1 billion-mark in quarterly revenue.

The company reported US$1.8 billion in total revenue for the quarter ended March 2021, skyrocketing from US$190 million it had clocked in the corresponding quarter last year. The surge in the revenue was triggered by the massive spike in the cryptocurrency prices during the quarter.

The trading volume on the platform stood at US$335 billion during the quarter under consideration – an 11x spike from US$30 billion in the first quarter of last financial year.

The company also clocked a net profit of US$771.5 million during the quarter, up 24 times from US$31.97 million clocked in the corresponding period last year.

During the quarter, the company added about 13 million new users on its platform – taking the tally of users to 56 million. This includes about 8,000 institutions, and over 134,000 ecosystem partners.

As the Coinbase recorded profit, it also added a caution note to the investors on the headwinds coming from the increasing competition, which they believe “are supporting certain crypto assets that are experiencing large trading volume and growth in market capitalization that we do not currently support, as well as offering new products and services that we do not offer.”

Last month, Coinbase went for direct listing, and opened at US$381 apiece and was briefly valued at US$100 billion. Coinbase is the first cryptocurrency exchange to be listed in the world.

As on Thursday, the company’s shares had closed 6.53% down in New York.


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