Cryptocurrency exchange Coinbase (Nasdaq: COIN) delivered a stunning Q4 earnings report on Thursday, beating analyst estimates by an eye-popping 109% with earnings per share of $4.51 — more than double the $2.16 predicted by 23 analysts.
The company reported $2.3 billion in quarterly revenue and $1.3 billion in net income for the fourth quarter, accounting for exactly half of the full-year net income of $2.6 billion. Full-year 2024 revenue reached $6.6 billion. CEO Brian Armstrong said during the earnings call, 'Coinbase had an amazing 2024. I'm very optimistic on these next few years.'
Bitcoin Dominates Trading Volume
According to the shareholder letter, bitcoin (BTC) accounted for 32% of all trading volume in 2024 and 27% in Q4. Similarly, the dominant cryptocurrency contributed 30% of transaction revenue for the year and 27% for the quarter. The letter stated, 'BTC inflows were the largest driver of native unit growth, driven by our role as primary custodian for the vast majority of ETFs.' Coinbase ended Q4 with $220 billion in assets under custody.
Regulatory Clarity Under Trump
Coinbase spent $363 million on general and administrative expenses in Q4, which includes legal costs. The firm has been a leader in lobbying for clear crypto regulations. Those efforts paid off handsomely when crypto-friendly Donald Trump won the November presidential election. Armstrong said, 'Crypto's voice was heard loud and clear in this recent U.S. election and it's the dawn of a new era. President Trump is moving fast to fulfill his promise of making the U.S. the crypto capital of the planet.' He added, 'The most pro-crypto Congress we've ever seen is now leading the charge on stablecoin and market structure legislation. It's hard to overstate the significance of this change that's happened in the last few months.'
For Q1 2025, Coinbase has already generated roughly $750 million in transaction revenue and expects its other services to bring in up to $765 million. With spot bitcoin ETFs continuing to attract inflows and a clearer regulatory framework ahead, analysts remain bullish on Coinbase's trajectory.