Cryptocurrency exchange Coinbase (Nasdaq: COIN) delivered a stunning Q4 earnings report on Thursday, blowing past Wall Street expectations by an eye-popping 109% on earnings per share (EPS). The San Francisco-based firm generated $6.6 billion in total revenue for 2024, of which $2.6 billion was pure profit. The fourth quarter alone contributed $2.3 billion in revenue and $1.3 billion in net income.
Massive Beat Across the Board
According to Coinbase's shareholder letter, the stellar performance was fueled by higher cryptocurrency prices and revenue from services such as staking, custody, and its flagship subscription product Coinbase One. While 23 analysts had predicted net income of just $2.16 per share based on 286.5 million outstanding shares, Coinbase delivered an EPS of $4.51—more than double the consensus estimate.
“Coinbase had an amazing 2024,” said CEO Brian Armstrong during the earnings call on Thursday evening. “I’m very optimistic on these next few years.”
Bitcoin Dominates Volume and Revenue
The report highlighted that Bitcoin (BTC) 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.”
Trump Administration Brings Regulatory Clarity
Coinbase spent $363 million on general and administrative expenses in Q4, including legal costs. The firm has been at the forefront of lobbying for regulatory clarity, and those efforts paid off handsomely when crypto-friendly candidate Donald Trump won the November election. “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 approximately $750 million in transaction revenue in Q1 2025 and expects its 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.”