One of the largest cryptocurrency exchanges in the world as well as the United States, Coinbase has just announced results for its first quarter of 2021. The exchange has revealed that it has made tremendous gains in the first quarter of 2021. Comparing the performance with the fourth quarter of 2020, Coinbase has revealed that its revenue in the first quarter has tripled.
As always, the US Securities and Exchange Commission has shared information around the revenue generated by Coinbase. The US SEC has confirmed that Coinbase released the information in its filing for the first quarter of 2021.
The cryptocurrency exchange has revealed that it has managed to generate $1.8 billion in revenues from the first quarter of 2021. Furthermore, the exchange successfully earned $3.05 from each share that it sold through its public listing.
Coinbase also revealed in the listing that it had expected that the price of the Coinbase share would be $3.07 but it fell off a bit, going down to $3.05.
Compared to the fourth quarter of 2020, Coinbase had generated $585 million in the form of total revenues. Coinbase did confirm in the filing that their prediction for the total revenue in the fourth quarter was less than the generated figure. The major driver that led to Coinbase generating such revenue in the fourth quarter was the Bitcoin (BTC) rally.
If compared to the first quarter of 2020, the total revenue generated by Coinbase in the first quarter of 2020 was a lot less than the recently completed quarter.
For the first quarter of 2020, Coinbase had only managed to generate $191 million in total revenues. The firm has confirmed that it generated more than 94% of its net revenue with the help of digital assets. In the past 6 months, the cryptocurrency trading volume on Coinbase has experienced a significant rise.
Therefore, the surge in cryptocurrency trading activities is the very reason that the exchange has generated such a high revenue in the last two quarters.
The revenue teams at Coinbase also shared the net profit report with the US Securities and Exchange Commission. The team confirmed that the net profits experienced a surge due to the increase in trading volumes. According to Coinbase, the net profits generated in the first quarter of 2021 were $771 million.
As compared to the fourth quarter of 2020, Coinbase’s net profits have quadrupled. If the first quarter of 2021 is compared with the first quarter of 2020, then the net profits have increased 24-times.
The exchange has also revealed that its cryptocurrency trading volume has also increased three times the size of the trades it experienced back in the fourth quarter of 2020.
In the previous quarter, Coinbase had a user-base of 2.8 million active users. However, the user-base has tripled since then and in the first quarter of 2021, the user-base increased to 6.1 million active users.