Cryptocurrency exchange Coinbase (COIN) has reported first-quarter financial results that surpassed Wall Street forecasts, including a surge in profits.
The company reported earnings per share of $4.40 U.S., which was 303% higher than the $1.09 U.S. expected among analysts.
Revenue in the January through March quarter totaled $1.64 billion U.S. versus $1.34 billion U.S. that was expected on Wall Street.
Coinbase, the largest crypto exchange in the U.S, said the results were due to a big rise in crypto trading during Q1 as the price of Bitcoin reached a record high of just under $74,000 U.S. in March.
A year earlier, Coinbase reported a loss of $78.9 million U.S., or $0.34 U.S. a share during Q1 of 2023.
Consumer transaction revenue during this year’s first quarter totaled $935 million U.S., up more than 100% from a year ago. Total transaction revenue tripled in the quarter to $1.08 billion U.S.
Coinbase tends to perform well whenever Bitcoin and other cryptocurrencies rally, leading to increased trading volumes and revenue.
The company also benefitted during Q1 after the U.S. Securities and Exchange Commission (SEC) approved U.S. spot Bitcoin exchange-traded funds (ETFs).
Many of the dozen U.S.-based Bitcoin ETFs have partnered with Coinbase as their custodial partner. By the end of Q1, the funds had attracted more than $50 billion U.S. of capital.
Despite the strong Q1 print, Coinbase faces some headwinds. The company remains mired in a legal battle with the SEC over whether it engaged in unregistered sales of securities.
Additionally, Coinbase faces renewed competition from Crypto.com, which has regained market share in recent months.
There have also been reports that Coinbase executives sold $383 million U.S. of company stock during the first quarter as the share price surged.
The stock of Coinbase has risen 372% over the last 12 months to trade at $228.85 U.S. per share.
