Coinbase Revenue Jumps, Buoyed by Bitcoin ETF Euphoria

Coinbase, the largest U.S. crypto exchange, reported $1.6 billion in revenue for the first quarter, more than doubled from a year ago and up 72% from the prior quarter, driven by strong crypto market conditions following the arrival of bitcoin exchange-traded funds in January.

Net income surged to $1.2 billion in the first quarter,  marking the second consecutive quarterly profit for Coinbase, but it benefited from $737 million in mostly unrealized crypto assets mark-to-market gains. In April, trading revenue reached over $300 million.

Trading volume at Coinbase Prime, its institutional service that works with big firms including bitcoin ETF issuers, hit all-time highs, driving revenue to $85.4 million from $22.3 million a year ago. Lending also surged and the company disclosed $797 million in loans to customers. Coinbase, which provides bitcoin custody for eight out of the 11 bitcoin ETF issuers, said custodial fees rose to $32.3 million, nearly doubled from a year ago. Coinbase’s headcount remains flat at 3,416, the same as the end of 2023.