- Coinbase reported $529 million in transaction revenue for Q4 2023, an 83% increase from the previous quarter.
- The surge was reportedly primarily driven by higher levels of volatility and crypto asset prices.
- Coinbase subscription and services revenue also grew 12% Q/Q to $375 million in the same period.
U.S.-based crypto exchange Coinbase has reported transaction revenue of $529 million for the fourth quarter of 2023, reflecting an 83% increase from the previous quarter. In a letter to shareholders, the exchange noted a surge in transaction revenue, primarily driven by higher levels of volatility and crypto asset prices.
The letter noted that Coinbase subscription and services revenue grew 12% quarter over quarter (Q/Q) to $375 million. Meanwhile, the exchange’s yearly figures reflect $3.1 billion in revenue for 2023, down 3% year over year (Y/Y), and subscription and services revenue grew 78% Y/Y to $1.4 billion during the same period.
Notably, Coinbase reported a 2023 net income of $95 million and adjusted EBITDA of $964 million. EBITDA is earnings before interest, taxes, depreciation, and amortization, and adjusted EBITDA removes one-time irregularities from the calculations.
The address to shareholders included information that the Coinbase balance sheet strengthened by reducing debt by $413 million and growing its total USD resources by $217 million Y/Y, ending 2023 at $5.7 billion.
Furthermore, Coinbase noted the launch of the Coinbase International Exchange and U.S. derivatives products from Coinbase Financial Markets (CFM). The crypto exchange added that it expanded operations internationally by obtaining licenses or registrations or launching in key growth countries – including Bermuda, Brazil, Canada, France, Singapore, and Spain.
Coinbase claimed to have generated approximately $320 million of transaction revenue as of February 13, 2024. The crypto exchange projects its Q1 2024 subscription and service revenue around $410-480 million.
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