Coinbase Beats Profit Estimates Amid Bitcoin Rally

Coinbase, the leading cryptocurrency exchange, posted stellar earnings for the first quarter of 2024, exceeding analysts’ expectations. The company’s success stems from the remarkable rally of Bitcoin during this period.

Coinbase reported revenue of $1.64 billion, surpassing analysts’ projections of $1.34 billion. Furthermore, the company achieved a net income of $1.18 billion, a remarkable turnaround from the $78.9 million loss it experienced in the same quarter last year. The previous quarter marked Coinbase’s return to profitability after two years, with the company reporting revenue of $953.8 million.

Coinbase’s exceptional Q1 profit reflects a $650 million gain on cryptocurrency assets held for investment, resulting from adopting revised accounting standards. Consumer transaction revenue more than doubled year-over-year, reaching $935 million for the quarter. Transaction revenue nearly tripled to $1.08 billion this quarter.

These impressive results coincide with Bitcoin’s historic rally, which broke its all-time high and exceeded the $73,000 mark in March. Coinbase’s stock price rose 9% ahead of its earnings report, although it has slipped 2% in after-hours trading.

Coinbase, Riot Platforms, and Tether Soar in Q1 2024

Along with Riot Platforms, a Bitcoin miner company, there was also a recorded company record for net income in Q1 2024 albeit this figure didn’t meet the expectation which was projected by the analysts. “Riot also reported a record net income of $211.8M, which is an incredible 1000% increase year-over-year.” Drill money increased by 55.4% year-on-year as the price of Bitcoin rose by 131%. However, the net revenue of Riot was short of estimates by 14%, amounting to $79.3 million.

However, Tether, the issuer of stablecoin, made a profit of 4.52 billion US dollars in the first quarter of this year 61% more than in the previous period. Such excellent results are supported by Tether’s growing reserves, which reached about $90 billion on Wednesday, which can be seen as the token’s high financial stability.

These outstanding actions of cryptocurrency companies recreate the rapid progress of digital assets, due to the Bitcoin skyrocketing performance, as well as the fast-growing reputation of cryptocurrency as a whole.

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