Brian Armstrong is the CEO of Coinbase. Michael Nagle—Bloomberg via Getty Images
After missing out on profits for two years, Coinbase executives celebrated posting a net profit of $273 million in the fourth quarter of 2023 and projected net profit for all of 2023 to be $95 million.
The market had been reacting favorably to Coinbase even before the earnings release, with shares closing 3.3% higher on Thursday and up about 13% in the after-hours. Analysts had mixed predictions about whether Coinbase would achieve a quarterly profit, but JP Morgan's recommendation on the stock was raised from underweight to neutral, which also helped boost the stock's price, according to Bloomberg. .
View coin share chart after February 15, 2023
During the earnings conference, CEO Brian Armstrong reiterated the importance of cryptocurrencies in the future of society and emphasized that Coinbase is working towards stricter regulation in the United States. , and sometimes criticized other companies in the same industry.
“Coinbase has always taken a long-term approach focused on building in a compliant way, even if it hasn’t been a popular choice. They cut corners and broke the law, and we've seen how that strategy plays out,” Armstrong said.
Coinbase CFO Alecia Haas said recent gains and volatility seen in the broader crypto market, as well as expectations and eventual approval for a Bitcoin ETF, could push the price of the top cryptocurrency by 50,000 yen. He acknowledged that it has helped push the dollar above the dollar.
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“The increased volatility had a significant impact on our trading revenue. We saw strong growth and re-engagement from both naive and advanced traders. We saw a significant increase among senior traders,” Haas said on a conference call.
Coinbase saw a 78% increase in subscription revenue and a $2.6 billion decrease in operating costs quarter-over-quarter. Total revenue for the quarter reached $954 million, bringing the year's total to $3.1 billion.
While some feared that a newly launched Bitcoin ETF could cannibalize some of Coinbase's business, executives on the call said they believe U.S. cryptocurrency innovation will continue to grow with established laws. They didn't seem to be as concerned about it as being behind other jurisdictions.
Chief Operating Officer Emily Choi echoed Armstrong's sentiments about finding the best path forward, and the CEO emphasized that Coinbase supports two bills currently introduced in Congress. . The company has also invested in an $85 million pro-crypto super PAC, supporting the Stand with Crypto Alliance, which aims to register crypto users to vote in the upcoming general election. There is.
“Whether the courts create new case law, Congress passes new legislation, or ultimately the 52 million Americans who used cryptocurrency voting in the upcoming election,” Armstrong said. However, we are confident that the United States will get this issue right.” ”
