Coinbase Q1 revenue triples, plans to add bank-like features and go live with dogcoin

Coinbase, the leading U.S.-based cryptocurrency exchange, more than tripled its revenue in the first quarter compared to its fourth quarter 2020 results.

Coinbase Q1 revenue triples, plans to add bank-like features and go live with dogcoin

Coinbase, a leading U.S.-based cryptocurrency exchange, reported first-quarter revenue that was more than three times the fourth-quarter results of 2020.

According to a filing with the U.S. Securities and Exchange Commission, Coinbase earned $3.05 per share on total revenue of $1.8 billion. However, the figure was slightly lower than its estimate of $3.07 per share.

By comparison, the company generated $585 million in revenue in the fourth quarter of 2020 as bitcoin rose to an all-time high, compared to $191 million in the first quarter a year ago.

About 94% of the company’s quarterly net income came from cryptocurrency asset transaction fees.

Coinbase’s net profit likewise surged, with the company reporting a profit of $771 million, more than four times that of the previous quarter and a 24-fold increase year-over-year.

Trading volume on the exchange roughly tripled compared to the previous quarter, and Coinbase more than doubled its active users, from 2.8 million to 6.1 million.

The company did not provide detailed guidance for its future performance, stating.

“Investors must remember that our business is inherently unpredictable.”

However, the company had optimistically predicted that it would host between 5.5 million and 9 million monthly users throughout the period of 2021.

Coinbase also revealed that it plans to go live with the popular modal coin dogcoin within the next eight weeks and increase the speed of new coins on the platform. during an appearance on CNBC’s Mad Money on May 13, Coinbase Chief Financial Officer Alesia Haas said.

“We’re very slow to get on new. We need to add more assets. We’re making big investments to increase the speed at which we add assets.”

Haas also noted that the company plans to expand the types of financial services it offers to its users, saying, “We want to be the primary financial account in the crypto economy and engage our users in all types of transactions.”

In addition to services that most people are “very familiar with in a typical fiat currency system,” such as “credit cards, loans, deposit accounts,” Haas emphasized the unique services that cryptocurrency assets bring to the table, such as betting and governance, adding.

“I think cryptocurrencies will enable new transactions that we can’t even envision today.”

Despite a strong first quarter of the year, Coinbase’s stock has fallen about 30 percent since its direct listing on April 14, last changing hands at about $265.

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