Coinbase generated $3.1 billion in revenue in 2023, a third of which came in the fourth quarter.
Major American cryptocurrency exchange Coinbase released its latest financial report on February 15, including its 2023 fourth quarter and full-year results.
In the fourth quarter of 2023, Coinbase reported net income of $273 million and adjusted EBITDA of $305 million. For the year, net income was $95 million and adjusted EBITDA was $964 million.
The company saw significant revenue growth in the fourth quarter of 2023, including:
- Total revenue increased 41% Q/Q to $954 million
- Trading revenue increased 83% Q/Q to $529 million
- Subscription and services revenue increased 12% Q/Q to $375 million
It also saw mixed growth throughout 2023, including:
- Total revenue was $3.1 billion, down 3% year-over-year.
- Trading revenue was $1.5 billion, down 36% year over year.
- Subscription and services revenue was $1.4 billion, up 78% year-over-year.
Coinbase also said it strengthened its balance sheet by reducing debt by 12% and increasing total U.S. dollar holdings to $5.7 billion. The company’s USD balance appears to include $5.1 billion in cash and cash equivalents and $576 million in USD Coin (USDC).
According to Coinbase’s full consolidated balance sheet, the company has $207 billion in assets, primarily comprised of $203 billion in liquid assets. Among the various assets not included in the current asset category, Coinbase reports holding nearly $450 million worth of cryptocurrency assets.
Coinbase discussed its global activities and more.
Coinbase highlighted its growing international presence. The company said it has registered more than 100 institutions on the international exchange, which launched in May 2023. It also revealed that 80% of cryptocurrency transactions occur outside the United States.
The company explained its institutional activities. It highlighted that it had onboarded one-third of the top 100 hedge funds by assets under management as of the fourth quarter of 2023.
Coinbase also discussed its management role in eight of the 11 spot Bitcoin ETFs, its participation in Fairshake Super PAC, and its attempts to have Securities and Exchange Commission (SEC) charges dismissed.
Discussing future trends, Coinbase reported that it generated $320 million in total trading revenue in the first half of the first quarter of 2024, but said it “urged caution in extrapolating these results.” Separate from trading revenue, Coinbase forecasts subscription and services revenue to be between $410 million and $480 million in the first quarter of 2024. The company added that it expects total costs to increase in 2024.
Coinbase stock (COIN) rose 5.29 points (3.3%) on February 15 and was up 21.21 points (12.8%) in the after-hours. The stock price was $.It is 165.67 as of 11:44 PM UTC.