Coinbase Crypto Exchange’s Revenue Triples in Q1 2021
Coinbase, the leading cryptocurrency exchange in the United States, has reported its revenue figures for its first quarter recently. The company’s revenue tripled in Q1 2021 than its performance in Q4 2020.
The documents filed with the U.S. Securities and Exchange Commission (SEC) show that Coinbase generated total revenue of $1.8 billion in Q1 in contrast to 585 million in Q4 2020 and US$191 million in Q1 2020. Coinbase’s earnings in Q1 2021 were US$3.05 per share, falling slightly short of the expectation of US$3.07 per share.
Reports say that almost the entire (around 94% of the) quarterly net revenue in Q1 2021 came from trading fees of the cryptocurrency asset. The net profit of Coinbase also more than quadrupled from the previous quarter. It reported $771 million in profits in Q1 2021, which means the profit of Coinbase increased by 24-times on a year-on-year basis (since Q1 2020).
The total number of active users of the company also doubled from 2.8 million in Q4 2020 to 6.1 million in Q1 2021. Coinbase showed its unwillingness to divulge any future projection of the company because of the “unpredictable” nature of its business. However, it said that Coinbase is willing to predict that throughout 2021, its monthly user count will be anything from 5.5 million to 9 million.
Coinbase has revealed that it plans to list Dogecoin (DOGE) on the platform in the coming 8-weeks.
Coinbase CFO, Alesia Haas, has said on CNBC’s Mad Money show on May 13 that
“We are slow. We need to add more assets. We’re making big investments to improve the speed of our asset addition.”
She went on to say:
“We hope to be the primary financial account in the crypto economy, and engage our users with all the transaction types.”
Alesia Haas also emphasized that Coinbase is adding many more crypto-enabled services such as staking and governance. She added:
“I think that crypto will enable new transactions that we can’t even envision today.”
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