Cryptocurrency exchange Coinbase (Nasdaq: COIN) delivered a stunning Q4 earnings report on Thursday, blowing past Wall Street expectations by a remarkable 109% on earnings per share. The company generated $6.6 billion in total revenue for 2024, with $2.6 billion in net profit, capping the year with $2.3 billion in quarterly revenue and $1.3 billion in Q4 net income.
Key Numbers: A Clean Sweep
Coinbase's Q4 earnings per share came in at $4.51, more than double the $2.16 average estimate from 23 analysts. The stellar performance, according to the company's shareholder letter, was driven by higher cryptocurrency prices and revenue from services such as staking, custody, and the flagship subscription product Coinbase One.
“Coinbase had an amazing 2024,” CEO Brian Armstrong said during the earnings call. “I’m very optimistic on these next few years.”
Bitcoin Dominates Trading and Revenue
Bitcoin accounted for 32% of total trading volume in 2024 and 27% in Q4, while contributing 30% of transaction revenue for the year and 27% for the quarter. The shareholder letter noted: “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: The Trump Dividend
Coinbase spent $363 million on general and administrative expenses in Q4, a category that includes legal costs. The firm has been a leader in lobbying for regulatory clarity, and those efforts paid off handsomely after crypto-friendly Donald Trump won the presidential election in November. “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.”
Q1 2025 Outlook
So far in the first quarter of 2025, Coinbase has already generated roughly $750 million in transaction revenue and expects its other services to bring in up to $765 million. Armstrong 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.”