Coinbase Global disclosed its fourth-quarter financial results, with its revenue climbing to $2.3 billion – an 88% increase from the previous quarter that exceeded analyst expectations. The standout performance was led by a remarkable surge in transaction revenue, which soared by 172% quarter-over-quarter to reach $1.6 billion, while subscription and services revenue grew by 15% to $641 million, beating the company’s own guidance range.
Further details revealed that consumer trading volume hit $94 billion, marking a 176% increase quarter-over-quarter and outpacing the overall U.S. spot market performance. In addition, Coinbase reported GAAP earnings per share of $4.68, far surpassing the consensus estimate of $1.81, and highlighted the addition of new cryptocurrencies such as Pepe Coin and dogwifhat to its trading portfolio.
The breakdown of trading activity showed that Bitcoin continued to dominate, composing 27% of both trading volume and transaction revenue in Q4, although its relative share declined compared to the third quarter. Ethereum accounted for 10% of Coinbase’s trading volume and transaction revenue, down from previous levels, while XRP Token contributed 14% to transaction revenue, reflecting a diversified trading infrastructure.
On a full-year basis, Coinbase achieved $6.6 billion in revenue, reflecting a 111% year-over-year increase, with full-year transaction revenue soaring by 162% to $4 billion. The company attributes this success to factors such as stronger regulatory clarity, the emergence of a new White House administration, and record-high prices in the cryptocurrency market, which it sees as ushering in a new era for the industry.
Looking ahead, Coinbase is focused on doubling down on its core strengths by enhancing revenue generation, increasing utility, and scaling its foundational operations. With a forecast for first-quarter subscription and services revenue in the range of $685 million to $765 million and ongoing transaction revenue already touching $750 million, the company is positioning itself for continued momentum amidst a dynamically evolving crypto landscape.