Coinbase posted total first-quarter revenue of $1.8 billion from $191 million in the same quarter a year earlier and an EBITDA (Earnings before tax, depreciation, and amortization) of $1.1 billion. EBITDA represents a company’s operating income without tax borrowings interest or accounting adjustments.
The crypto exchange disclosed in a press release that the results are preliminary and unaudited. Coinbase’s net income increased to between $730 million and $800 million from $32 million a year ago. The company said it has 56 million verified users.
Coinbase is set to become the latest tech company to reach the market with a large valuation, capitalizing on continued growth in the sector despite broader economic difficulties caused by the ongoing global health crisis.
The U.S.-based digital currency exchange’s fortunes are linked closely to the swings of the digital currency market; it lists for trading around 50 cryptocurrencies besides bitcoin.
The first three months of the year saw bitcoin (BTC) amplify the strong rally of 2020. Its price grew over 200%, breaking past the $61,000 level.
A number of other cryptocurrencies, like ether, also climbed sharply in the face of surging demand and public interest not just in virtual money but also in artworks with their own distinct digital tokens, known as NFTs, or nonfungible tokens.
Coinbase expects a second-quarter expense of $35 million because of its direct listing. The company estimates that its expenses will total $1.3 billion to $1.6 billion this year, according to The Wall Street Journal.
Total assets on Coinbase’s platform rose from $90 billion to $224 billion — almost a 150% increase quarter-over-quarter.
Image courtesy of Alesia Kozik/Pexels
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