Cryptocurrency exchange Coinbase has marked its 5th consecutive quarter of growth, recording sales of $953 million. This growth, representing a 41% increase on the previous quarter, highlights Coinbase’s robustness in the sector. This trend could intensify in Q1 2024, thanks in particular to the volume generated by spot Bitcoin ETFs.
Coinbase records 5th quarter of sales growth
Cryptocurrency exchange Coinbase recorded sales of $953 million in Q4 2023, marking a 41% increase on Q3 2023 sales of $674 million.
This increase in sales is mainly due to transaction revenues, which were up 83% between Q3 and Q4 2023, reaching almost $530 million.
For the full year 2023, the company’s sales amounted to $3.1 billion, slightly below the $3.2 billion recorded the previous year.
However, the company posted a 5th consecutive quarter of sales, exceeding forecasts and demonstrating steady progress since the low point reached in Q3 2022, which then stood at $590 million.
Exceeding sales forecasts by 15% has greatly benefited the company’s share price, which has risen by 45% in almost 2 weeks.
COIN share price evolution since early 2023
The Coinbase share price has risen considerably since the beginning of 2023, following the upward trend of the cryptocurrency market, from $32 in January to $180 in December, an increase of 490% in one year.
It should be noted that the Q4 results do not take into account the revenues potentially generated by the exchange of Bitcoin spot ETFs, which were only accepted in January 2024.
The impact of these ETFs on Coinbase’s sales will only be visible on May 8, when the company publishes its results for the 1st quarter of 2024.
Beyond the appeal of ETFs to the cryptocurrency market, Coinbase acts as custodian for 9 of the 11 accepted ETFs, including those from Grayscale and BlackRock, which are the 2 most capitalized ETFs. They account for 68% of the $42 billion in cumulative volume since the launch of Bitcoin spot ETFs.
