The US-listed cryptocurrency exchange Coinbase saw its stock price surge nearly 15% on the 16th following the release of its Q4 earnings report on the 15th. At one point during trading, the stock reached a high of $193.64. Analysts in their Friday report expressed optimism that institutional purchases would provide “strong support” for Bitcoin prices in the next 3-6 months.
Coinbase, the US-listed cryptocurrency exchange, released its Q4 earnings report after the US stock market closed on the 15th. The company reported a net profit of $273.4 million, exceeding Wall Street’s expectations and marking its first profit in two years. It also projected further revenue growth in Q1 of this year, driving Coinbase’s stock price to surge 15% on the 16th.
According to Yahoo Finance data, Coinbase’s stock price briefly soared to a high of $193.64, reaching its highest level since the end of March 2022. It closed at $180.31, an increase of 8.84%.
In its Q4 earnings report, Coinbase attributed its increased trading revenue of $529.3 million, a 64% year-on-year increase, to the optimistic expectations for the SEC-approved Bitcoin spot ETF and the large increase in Bitcoin prices last year. Coinbase’s stock price also surged nearly 391% in 2023, far surpassing Bitcoin’s 155% annual increase last year.
In addition, Coinbase’s subscription and service division, which covers business outside of trading, saw a revenue increase of nearly 33% to $375.4 million in Q4. The largest contribution to revenue came from its stablecoin business, which partnered with Circle, the issuer of USDC, to earn interest on stablecoin holdings. The Federal Reserve’s interest rate hikes also contributed to Coinbase’s profitability.
On the other hand, Coinbase, as a custodian for several Bitcoin spot ETF issuers, released its latest Cryptocurrency Market Weekly Report on Friday, indicating that institutional purchases will boost Bitcoin prices in the coming months. The report stated that institutional funds have flowed into the existing 11 Bitcoin spot ETFs in the US, exceeding $4.2 billion so far this year, several times the median expectation of $1 billion before the ETFs were approved. In addition, the net inflow of $3.3 billion into Bitcoin ETFs in the first month also surpassed the net inflow of $1.8 billion into the SPDR Gold ETF (GLD) in its first month, which is one of the most successful ETF launches in history.
These data highlight the growing confidence of institutional investors in Bitcoin as an investable asset and have helped push the total market capitalization of cryptocurrencies to its highest level since March 2022, surpassing $2 trillion. Coinbase analysts pointed out that Bitcoin’s price broke through the $52,000 mark again last night, reaching a high of $52,572 before falling back to fluctuate around $52,000. As of the time of writing, it was reported at $51,959, a slight decrease of 0.2% in the past 24 hours.
Source: Trading View