Coinbase Reports Strong Earnings

U.S. cryptocurrency exchange Coinbase reported strong fourth-quarter and full-year earnings on Thursday, exceeding expectations and demonstrating significant growth across its operations.

Financial Highlights

• Net Income: $579 million
• Revenue: $2.3 billion, exceeding estimates by about $430 million, an increase from $1.13 billion in the third quarter.
• Fourth-Quarter Transaction Revenue: Rose 172% quarter-over-quarter to $1.6 billion, compared to $529 million a year ago.
• Full-Year Revenue: $6.6 billion, more than doubling 2023’s total of $3.1 billion.
• Funds in USD Resources: $9.3 billion, up from $8.2 billion last quarter.

Outlook on Crypto Regulation

In its annual shareholder letter, Coinbase stated, “It’s the dawn of a new era for crypto,” expressing optimism about the future following the recent US elections, with a shift away from punitive regulations. The company highlighted that the Trump Administration aims to position the U.S. as the global leader in cryptocurrency.

Stock Performance

Coinbase shares saw an increase in after-hours trading, reflecting positive market sentiment. The stock has risen 16% in early 2025 and approximately 112% in the past year, bringing its market cap to just over $73 billion, according to The Block.

Crypto Banking Rules

Earlier this month, Coinbase urged U.S. banking regulators to clarify crypto banking rules and put an end to alleged debanking practices that restrict banks from providing crypto services. Faryar Shirzad, chief policy officer at Coinbase, asserted that this practice needs to stop.

Coinbase continues to seek benefits from a more crypto-friendly administration in the future.