Cryptocurrency exchange Coinbase exceeded its past performance by 24 times
Cryptocurrency exchange Coinbase published a report on financial performance. It was the first since the site went public in April last year. According to the information provided, the company’s net profit for the first quarter was $771 million. This figure is 24 times higher than the same period last year.
The largest cryptocurrency exchange in the world had revenue of $1.8 billion, while in the previous quarter the amount was at the level of $585 million. The site managed to increase profit per share to 3.05%. Experts note that the results of the reporting period almost correspond to the estimates that Coinbase published before the listing.
Approximately 94% of the revenue is derived from operating fees from cryptocurrency trading. Coinbase has higher fees than other venues.
According to representatives of the cryptocurrency exchange, margins remain high, which ensures the reliability of processes on the exchange. The company’s main goal remains to provide quality services to everyone, even amid a surge in demand. The number of monthly transactions in the first quarter 3 times exceeded the values of the last 3 months. In the near future the exchange plans to add dogecoin to the list of available cryptocurrencies.During the presentation of the financial statements, the management of the site refrained from making recommendations that would help increase returns. They noted that the crypto business is quite unpredictable, so investors should keep this in mind, and regularly adjust their actions to changing market conditions. As for predictions, Coinbase expects an increase in the number of users who conduct transactions. This number is expected to grow throughout the year by about 9 million people. In this case, the process will be influenced by fluctuations in the value of the cryptocurrency.
Analysts also note that on average, the company’s net profit per year will reach a historic high and exceed the figure of $35-45. The first trading of shares on the Coinbase exchange started last year at $381 per paper. The company’s valuation was $100 billion, which was a record for cryptocurrency exchanges. Since the listing period, the share price has fallen about 30%, but has seen an increase of about 3% in the last month.
Coinbase was founded in 2012 by a businessman and programmer. Currently, the site controls about 11% of the entire cryptocurrency market, and it offers the ability to work with 50 digital currencies. The simple functionality allows you to quickly perform transactions without special skills. An important advantage of the exchange is the reliability and high level of security of transactions.