Crypto comeback: Coinbase reports record profits in 2024

Overview

Coinbase reported strong financial results for Q4 and full-year 2024, with revenue more than doubling to $6.6bn, net income of $2.6bn, and adjusted EBITDA of $3.3bn. The company highlighted significant momentum in the crypto market, aided by regulatory shifts in the U.S. and increasing institutional adoption.

Coinbase reinforced its position as a trusted partner for institutions in 2024, with total assets under custody (AUC) reaching $220bn and institutional trading volume surging 128% quarter-over-quarter. The rapid growth was fueled by record inflows into crypto ETFs, which pushed AUC from ETFs alone to $93.2bn. Additionally, the accelerated adoption of Coinbase Prime’s institutional suite strengthened its footprint among top-tier clients.

Q4 2024 key financial results:

Total revenue increased to a value of $2.3bn (+88% vs. Q3 2024), driven by surging transaction activity.
- Transaction revenue rose to $1.6bn (+172% QoQ), fueled by increased market volatility and Bitcoin ETF activity.
- Subscription & services revenue was $641m (+15% QoQ), supported by higher crypto asset prices, staking inflows, and Coinbase One subscriber growth.
Net income reached a significantly higher value than in previous quarters, at $1.3bn, reflecting $476m in pre-tax crypto investment gains, largely unrealized.
Adjusted EBITDA was on the same growth trend and reached a value of $1.3bn (+187% vs. Q3 2024), with a strong profit margin.
Diluted EPS reached a value of $4.68, after a value of only $1.04 in Q4 2023.
Operating expenses was $1.2bn (+19% QoQ), primarily due to higher marketing and policy advocacy spending.
The company launched 92 new trading pairs, reaching all-time high volume in Q4.

Full-Year 2024 highlights:

Total revenue recorded a value of $6.6bn (+111% YoY), reflecting a sharp rebound in trading activity and crypto adoption.
- Transaction revenue increased significantly to a value of $4.0bn (+162% YoY), driven by elevated crypto volatility and increasing institutional engagement, from hedge funds, corporate treasuries, and registered investment advisors, with ETFs driving record inflows.
- Subscription & services revenue rose to $2.3bn (+64% YoY), benefiting from Coinbase One, stablecoin expansion, and staking rewards.
Net income experienced impressive growth to a value of $2.6bn, including $687m in pre-tax crypto gains.
Diluted EPS increased from a value of only $0.37 in FY2023 to a value of $9.48 for FY2024.
Adjusted EBITDA also increased more than 3 times to a value of $3.3bn, showcasing robust profitability.
Assets under custody (AUC) ended the year at $220bn, supported by ETF inflows and growing institutional participation.
Coinbase One surpassed 600,000 subscribers, contributing significantly to revenue growth.

Coinbase anticipates continued strong performance in 2025, fueled by increasing crypto adoption, product expansion, and regulatory advancements. Q1 2025 revenue from subscription & services is projected between $685m and $765m, reflecting stablecoin growth and higher asset prices. Transaction revenue is expected to remain robust, driven by high trading volumes and ETF activity. Operating expenses are estimated at $750m to $800m, as the company continues investing in growth and customer experience, while marketing and sales costs are projected between $235m and $375m, depending on performance-driven campaigns. With a strong balance sheet of $9.3bn in USD resources, an expanding institutional presence, and an increasingly favorable regulatory environment, Coinbase is well-positioned to capitalize on the long-term expansion of the crypto market.

After closing the trading day on Thursday, February 13th, with a +8.44% share price, in after-hours trading and after the release of the key results report, the price has slightly decreased, by about -1% at the time of writing. Even so, COIN shares are trading at +112% in the past year, a sign that the cryptocurrency market is in a continuous expansion.