Coinbase posted a major first-quarter beat late Thursday, driven by bitcoin’s start-of-the-year boom and renewed interest in cryptocurrencies. Meanwhile, bitcoin rebounded slightly after falling on Wednesday to a key pressure point for institutional investors. Cryptocurrency prices and spot bitcoin ETFs jumped on bitcoin’s advance. Coinbase stock initially fell on results.

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Coinbase (COIN) reported earnings of $4.40 per share, up from a loss of 34 cents per share the same quarter a year prior. Total revenue leapt to $1.64 billion, up 111% year over year and increasing 72% from last quarter.

Analysts polled by FactSet expected Coinbase to report earnings of $1.15 per share on a 76% revenue spike to $1.36 billion.

Transaction revenue bolted 187% higher year over year to $1.08 billion, also doubling from Q4. Consumer transaction revenue swelled to $935.2 million, up from $468.9 million in the fourth quarter and $392.2 million for Q1 last year. Institutional transaction revenue bolted to $85.4 million, vaulting nearly 133% from the fourth quarter and massively increasing from the $22.3 million recorded last year.

Subscription and services revenue jumped 41% to $511 million, compared to the company’s prior estimates of $410 million to $480 million and analyst estimates of $458 million. The revenue spike was primarily driven by Coinbase’s blockchain rewards, which more than doubled to $150.9 million.

Stablecoin revenue ticked down slightly to $197.3 million for the quarter.

Coinbase saw a major boost in custodial fee revenue, largely due to higher crypto prices. The exchange is also serving as the custodian for a majority of the U.S. spot bitcoin ETFs that launched in January.

Coinbase’s custodial fee revenue leapt 90% to $32.3 million, compared to FactSet estimates of $31 million. It recorded $19.7 million in custodial fee revenue for its fourth-quarter ending in December.

The company said it generated more than $300 million in total transaction revenue in April. Coinbase guided Q2 subscription and services revenue to range from $525 million to $600 million.

FactSet predicts Q2 earnings of 94 cents per share on 82% revenue growth to $1.29 billion. Analysts expect subscription and services revenue for the quarter will jump 45% to $489 million.

Coinbase Stock

Coinbase stock pared its after-hours loss to 1.4% Thursday following results. Shares leapt 8.9% during regular trade leading up to results.

COIN stock has retreated about 20% from its March 25 peak of 283.48, which marked its highest level since December 2021. Still, Coinbase stock rallied nearly 28% in 2024 through Thursday’s close.

Meanwhile, bitcoin rebounded more than 3% over the last 24 hours to climb back above $59,000 late Thursday. The world’s largest crypto is in another correction that began at the end of March and continued through the April 19 halving event, digital asset analytics firm 10x Research reported. Bitcoin has fallen nearly 20% from its March 14 record high $73,798. Still, bitcoin leapt more than 41% so far this year.

Other crypto-related stocks climbed Thursday as bitcoin rebounded. Marathon Digital (MARA) led bitcoin miners with a 6.2% jump Thursday, followed by Riot Platforms (RIOT) which surged 4.9%, and Hut 8 (HUT) with a 2% advance. CleanSpark (CLSK) rose 1.9%, after five consecutive daily declines.

The U.S. spot bitcoin ETFs, including the iShares Bitcoin Trust (IBIT), ARK 21Shares Bitcoin ETF (ARKB) and Grayscale Bitcoin Trust (GBTC), all advanced about 4.3% Thursday as bitcoin surged.

You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison

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