Coinbase reported revenue that exceeded expectations, and its stock price soared 14%! Blockchain concept stocks rose simultaneously

According to the Q4 financial report released by Coinbase, trading revenue in the fourth quarter of last year reached US$529.3 million, an increase of 64% compared with the same period last year. This growth was mainly due to the market’s optimistic expectations for the U.S. Securities and Exchange Commission’s (SEC) approval of a Bitcoin spot ETF and the surge in Bitcoin prices. Coinbase, a U.S.-listed cryptocurrency exchange, has been driven by these factors.

Revenue increased significantly, turning losses into profits for the first time in 2 years

Coinbase turned losses into profits for the first time in 2021, with net profit in the fourth quarter of last year reaching US$273.4 million, and earnings per share of 1.04 US dollars, far exceeding the loss of US$557 million in the same period last year, and the loss per share was US$2.46. This marks a huge performance improvement for Coinbase over the past year.

FactSet survey showed that Coinbase’s earnings per share in the fourth quarter of last year was only US$0.02, far exceeding market expectations. Coinbase achieved total revenue of $953.8 million in the quarter, beating analysts’ forecasts of $826.1 million.

Stablecoin revenue contributed a lot

According to the financial report, Coinbase’s subscription and services department’s revenue in the fourth quarter of last year increased by nearly 33% year-on-year to US$375.4 million, of which stablecoin revenue contributed maximum. Coinbase has partnered with Circle, the issuer of the stablecoin USDC, to make money by earning interest on the stablecoin, and the Federal Reserve’s interest rate hikes have had a significant impact on Coinbase’s earnings.

Coinbase expects revenue from its subscription and services segment to be between $410 million and $480 million in the first quarter of this year, higher than analysts’ estimates of $356.22 million.

Coinbase’s stock price soared by more than 14% after hours

Originally Coinbase’s stock price closed up 3.3% to $165.67 on the 15th, setting a new closing high since December 29, 2023. After the financial report was released, it rose 14.3% to $189.36 after the market closed.

Blockchain concept stocks rose more or fell less

On the other hand, driven by Bitcoin rising above $50,000, most blockchain concept stocks closed higher.

Except for Coinbase, Robinhood rose 0.3%, Paypal rose 1.41%, Block rose 3.07%, and Mastercard rose 1.31%. However, mining companies Riot Platforms fell 6.19% and Marathon Digital fell 8.13%.

##Performance of Blockchain Concept Stocks

In addition, as the U.S. Department of Commerce released data on Thursday, U.S. retail sales fell by 0.8% month-on-month in January, a decline exceeding Unexpected, further boosting the market's expectations that the Federal Reserve will soon start to cut interest rates in the next few months. U.S. stocks rose more or fell less on the 15th:

• The Dow Jones Industrial Average rose 348.85 points or 0.91%, closing at 38773.12 points

• The S&P 500 index rose by 29.11 points or 0.58%, closing at 5029.73 points

• Nasdaq The index rose 47.03 points or 0.30% to close at 15906.18 points

• The Philadelphia Semiconductor Index fell 7.31 points or 0.16% to close at 4558.10 points

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