Anil Gupta, vice president of investor relations at Coinbase, said that the company’s strict operating rules paid off in 2023. The value of the cryptocurrency grew during 2023, but the rally intensified in the fourth quarter amid rumors of the approval of spot ETF applications.
During the fourth quarter, trading volume increased by 100%. Revenue totaled $154 billion, exceeding the estimate of $142.7 billion.
According to Gupta, the ETF is a win-win option for Coinbase. The crypto exchange provides custodial services for 80% of spot bitcoin ETFs. While depository operations make up only a small part of the business.
Coinbase also reported adjusted Ebitda for 2023 of $964 million in the first quarter of 2024, the exchange expects to generate revenue from subscriptions and services in the range of $410 to $480 million dollars.
Coinbase shares rose about 13% in post-market trading after rising about 3% during the regular session. Recall that last year, the shares of COIN fell in value by about 4%, despite the increase in the price of Bitcoin by about 23%.