Cryptocurrency exchange Coinbase (Nasdaq: COIN) delivered a blockbuster Q4 earnings report on Thursday, smashing analyst estimates by a stunning 109% on earnings per share.
Record Quarterly Performance
Coinbase generated $6.6 billion in total revenue for 2024, with net income reaching $2.6 billion. The fourth quarter alone contributed $2.3 billion in revenue and $1.3 billion in net income—exactly half of the year's total. Earnings per share came in at $4.51, far exceeding the $2.16 consensus estimate from 23 analysts polled by Wall Street.
According to the company's shareholder letter, the stellar results were driven by higher cryptocurrency prices and growth in services such as staking, custody, and the premium subscription product Coinbase One. CEO Brian Armstrong said during the earnings call, “Coinbase had an amazing 2024. I’m very optimistic on these next few years.”
Bitcoin Dominance and ETF Tailwinds
The launch of spot Bitcoin ETFs in January 2024 and Donald Trump's decisive election victory in November were pivotal to Coinbase's financial success. Bitcoin accounted for 32% of all trading volume in 2024 and 27% in Q4, while contributing 30% of transaction revenue for the year and 27% for the quarter.
“BTC inflows were the largest driver of native unit growth, driven by our role as primary custodian for the vast majority of ETFs,” the letter stated. “We ended Q4 with $220 billion in assets under custody.”
Coinbase spent $363 million on general and administrative expenses in Q4, including legal costs. The firm has been a leading advocate for regulatory clarity, and the pro-crypto shift in Washington paid off handsomely. “Crypto’s voice was heard loud and clear in this recent U.S. election and it’s the dawn of a new era,” Armstrong said. “President Trump is moving fast to fulfill his promise of making the U.S. the crypto capital of the planet.”
Looking ahead, Coinbase has already generated roughly $750 million in transaction revenue for Q1 2025 and expects other services to bring in up to $765 million. “The most pro-crypto Congress we’ve ever seen is now leading the charge on stablecoin and market structure legislation,” Armstrong added. “It’s hard to overstate the significance of this change that’s happened in the last few months.”