Coinbase Announces First Earnings Report, Q1 Net Profit Exceeds $771 Million, Plans to Offer Dogcoin Trading in Next 6-8 Weeks

On Thursday, cryptocurrency exchange Coinbase announced the company’s fiscal 2021 first quarter earnings, the first earnings report the company has released since its IPO (initial public offering).

Coinbase Announces First Earnings Report, Q1 Net Profit Exceeds 1 Million, Plans to Offer Dogcoin Trading in Next 6-8 Weeks

Coinbase’s first-quarter net profit of $771.5 million was more than four times the $177 million reported in the fourth quarter of 2020, up 3.36 times sequentially and more than 24 times the profit of the same period last year, according to the report.

As of the first quarter of 2021, the platform had more than 56 million verified users and $335 billion in transaction volume. Monthly trading users more than doubled from the previous quarter, increasing from 2.8 million to 6.1 million.

Coinbase reported first quarter earnings of $3.05 per share on revenue of $1.8 billion, up from $585 million in the fourth quarter of 2020 and $191 million in the same quarter last year. Coinbase shares have fallen about 30.4 percent since its April 14 IPO, excluding after-hours trading, and closed Thursday at $265.10, down 6.53 percent daily.

In addition, Coinbase CEO Brian Armstrong said on a conference call following the company’s official first-quarter earnings announcement, “We plan to offer dogcoin trading in the next 6-8 weeks.”

The price of dogcoin has been on a roller coaster ride lately, peaking just before Tesla CEO Musk’s appearance on “Saturday Night Live” last weekend, but plummeting ever since.

During the conference call, Armstrong also noted that the crypto economy is adding “more and more assets” and compared the process of adding new cryptocurrencies to the process of adding apps to the app store.

Another popular question concerned Coinbase’s view on decentralized exchanges, and Armstrong said the company was “very excited” about the so-called DeFi, but did not provide details on its specific strategy.

In response to a question about Coinbase’s higher fees than some exchanges, CFO Alesia Haas said, “We’re not trying to win on fees, we’re trying to gain maximum trust.”

Coinbase’s fortunes are tied to the performance of digital assets like bitcoin. About 94 percent of the company’s net revenue in the first quarter came from transaction fees.

Haas said the company’s main focus in the first quarter was reliability, “We’re dealing with unprecedented growth in demand, with a focus on making sure our exchange remains stable.”

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