Summary
TLDR: Coinbase reported a profitable final quarter of 2023, with a profit of $273.4 million compared to a loss of $557 million the previous year. The company’s success was attributed to its USD Coin stablecoin and reduction of debt. After a difficult 2022 and 2023, Coinbase’s improved financial position has led to a strong market response, with shares jumping 11% in after-hours trading. The company is also fighting a lawsuit from the SEC alleging the sale of unregistered securities. The improved crypto market, including the approval of crypto ETFs, has also contributed to Coinbase’s success.
Key Points
1. America’s biggest cryptocurrency exchange Coinbase reported a successful final quarter of 2023.
2. The San Francisco-based company’s Q4 2023 results showed that the company reported a profit of $273.4 million, compared with a loss of $557 million the same quarter one year ago. In Q3 2023, the exchange had reported a loss of $2 million in profit.
3. Coinbase also makes money from interest earned on its USD Coin (USDC) stablecoin. This product helped the exchange swing to profit because it jumped nearly 18% to $171.6 million.