The central theses
- Coinbase tripled its quarterly earnings in the first quarter of 2021 and posted a profit of $ 771 million.
- Brian Armstrong, CEO of Coinbase, says the exchange will be listing Dogecoin soon.
- The exchange went public on NASDAQ last month and briefly reached a valuation of $ 100 billion.
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Coinbase is having its strongest quarter yet as the crypto market can soar.
Coinbase is riding the crypto boom
Coinbase posted a profit of $ 771 million in the first quarter of 2021.
The exchange held its first earnings call last night since it was listed on NASDAQ, confirming that it had tripled its sales from the previous quarter. The company’s total revenue was $ 1.8 billion, while earnings reached $ 3.05 per share.
The numbers closely matched what Coinbase had forecast at the time of the direct listing. The total volume on the exchange was 335 billion US dollars after 89 billion US dollars in the previous quarter. Of that $ 335 billion, $ 215 billion came from institutional buyers, reinforcing the view that the crypto space attracts more than just retail noise. The monthly transaction users also increased from 2.8 million to 6.1 million.
Interestingly, the company’s CEO Brian Armstrong noted that the exchange plans to list Dogecoin in the next six to eight weeks. He said:
“We’re working a lot thinking about how we can accelerate the onboarding of our assets, including DOGE.”
Dogecoin has outperformed the rest of the market this year, backed by Elon Musk and widespread media coverage. Over the past few weeks, meme currency has been replicated in various “dog coin” clones. Vitalik Buterin sent a hefty pile of the replica coins he received earlier this week to various charities. A donation he made to a COVID-19 relief fund in India was valued at around $ 1.1 billion on paper.
The company also noted that its business was “inherently unpredictable”. Coinbase’s recent success can be attributed to increasing demand for assets like Bitcoin and Ethereum. About 94% of the result came from transaction fees last quarter.
Coinbase went public on NASDAQ in April in what has been described as a turning point for the cryptocurrency industry. It opened at $ 381 per share and briefly reached a valuation of $ 100 billion. Stocks have since fallen: they were valued at $ 265 as of yesterday’s market close.
Disclosure: At the time of writing, the author of this feature owned ETH and several other cryptocurrencies.
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