Excitement is brewing as Coinbase gears up to unveil its fourth-quarter earnings this Thursday. Industry watchers are buzzing with anticipation, predicting a standout performance driven by a significant uptick in trading volume as the crypto market experienced a vibrant rally.
Analysts are setting the bar high, with expectations of revenue soaring to $826.1 million from $674.1 million in the preceding quarter. The surge in trading volume, estimated at $142.7 billion compared to $76 billion in Q3, alongside a forecasted earnings per share (EPS) of $0.02, up from a previous loss of $0.01 per share, paints a promising picture for the crypto exchange.
Coinbase’s dynamic quarter is attributed to the lively digital currency market, bolstered by the approval of spot bitcoin (BTC) exchange-traded funds (ETFs) in the U.S. This optimism mirrors the positive trend observed in Robinhood’s earnings, which showcased a 10% boost in crypto revenue.
Investment experts, including those from Needham and Compass Point, are optimistic about Coinbase’s performance, citing strong revenue and adjusted EBITDA as key indicators of a robust quarter. Despite differing views on the impact of Coinbase’s involvement with spot bitcoin ETFs, the consensus leans towards a bullish outlook for the exchange.
While some caution about potential challenges ahead, particularly in relation to ETF-related assets under management (AUM), others believe the ETFs mark a significant milestone that could usher in more interest and trading activity in the crypto space.
As Coinbase prepares to share its financial achievements, the crypto community is keenly watching, hopeful that this will mark another milestone in the exchange’s journey. With the price of bitcoin crossing the $51,000 threshold, it’s an exciting time for crypto enthusiasts and investors alike.
