Coinbase earnings suggest strong year ahead, though challenges abound
Coinbase's quarterly earnings report released last week indicated the company is well-positioned to tap into a number of growing revenue streams.
Coinbase on Feb. 15 issued its earnings report for the fourth quarter of 2023, and it’s clear the company is poised for a dominant role in the year ahead, thanks predominantly to Bitcoin (BTC) trading. Its technology expenses for 2023 were $1 billion lower than in 2022, and the company's net income and earnings (EBITDA) are trending positive.
Until 2021, a large variety of crypto assets vied for (and received) investor attention on the company's platform. Over the past two years, both consumer (retail) and institutional volumes have been shrinking while two dominant favorites emerged in the cryptocurrency space: Bitcoin and Ethereum (ETH), with the former ahead by some margin.
Other cryptocurrencies remain an area of intense investor speculation as evidenced by the fact that they continue to contribute to nearly half of the company's transaction revenues.
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