• Transaction revenue, the firm's primary source of income, surged by 83% in the fourth quarter to $529 million, driven by increased volatility and asset prices.

• The breakdown of transaction revenue reveals bitcoin, ether, and other crypto assets as the main contributors, with the latter accounting for 48% of revenue, narrowly surpassing bitcoin's 35% share in 2023.

• The approval of spot bitcoin ETFs in mid-January sparked concerns among analysts and investors about potential competition with Coinbase's crypto trading business, impacting the company's shares.

• Coinbase's stock soared over 13% in after-hours trading following the earnings report, signaling investor optimism.

• The company reported a $273 million profit in Q4, with $95 million earned on $3.1 billion in revenue for the full year of 2023, a significant turnaround from the $2.6 billion loss recorded in 2022.

Official case filings to the SEC

• Revenue for Q4 reached $954 million, marking a 41% increase from the previous three months.

• Transaction revenue in Q1 2024, as of Feb. 13, totaled $320 million, indicating a strong start to the year.

• Coinbase's revenue largely depends on trading fees, which surged amid the fourth-quarter crypto price rally, positioning the company as a Bitcoin proxy due to its correlation with the digital asset's performance.

• As part of its diversification strategy, Coinbase has expanded its business with initiatives such as an international derivatives exchange and obtaining licenses for geographical expansion.

• Despite its financial success, Coinbase has faced challenges, including workforce reductions, regulatory battles with the SEC, and substantial spending on public policy influence. Read more here about the case:
  https://www.axios.com/2023/06/06/sec-sues-coinbase-binance

Conclusion: Coinbase's achievement of a quarterly profit signals resilience and adaptability in the volatile crypto market. As the company navigates regulatory hurdles and continues its expansion efforts, investors remain keen on its performance and strategic moves in the evolving crypto landscape.