Coinbase: Cryptocurrency Rally Power …
The high prices of cryptocurrencies led to a significant improvement in Coinbase’s currency Results, with total revenues by 138 % from last year to $ 2.3 billion. The net income increased to $ 1.3 billion from $ 273 million last year, although this includes 357 million dollars of post -tax gains on cryptocurrencies.
Why do it matter: Despite revenue more than weakness, Coinbase’s shares have not already changed in post -hours trading as the market came with high expectations. Coinbase’s works are closely related to the prices of cryptocurrencies, and given its last performance, the strong quarter was inevitable.
- Retail traders are usually attracted to Coinbase, the largest source of revenue, through the main rise in encrypted currency prices. In addition, Coinbase is imposed as a spread of trade value, which creates a direct contact between cryptocurrency prices and their commercial revenues.
- Since the elections, the prices of cryptocurrencies have increased sharply, with the market value at the end of the year increased by 98 % in 2024 to 3.4 trillion dollars. This led to a 194 % increase in transaction revenue to $ 1.56 billion.
The bottom line: We expect to increase our fair estimates of unintended garbage disease to mid to mid -period, mainly due to high revenue expectations for coin and trading. Despite the increase, we still believe that the stocks are exaggerated because the market is pricing in a lot of growth.
- Since the presidential election, the market has re -assembled Coinbase dramatically due to the high prices of cryptocurrencies and a more suitable organizational environment.
- However, the prices of cryptocurrencies are volatile, and we warn against extrapolating a lot of additional growth on current assessments. In addition, while organizational clarity provides an immediate benefit for Coinbase, it is also possible to lead to more competition over time.
Main statistics: Coinbase 19 % of its revenues from outside the United States achieved an increase of 16 % last year, as the company’s international investments offer returns.
Coinbase’s share price for a fair value estimation
Coinbase Stablecoin Revenue
Coinbase generates Stablecoin’s revenues through the interest gained on the guarantee behind Stablecoin USDC. As a result, the company’s revenue is a USDC market job and interest rates, according to the details of its economic partnership with Circle. Although it was not fully reflected in the results of the fourth quarter, the end of the tail of 2024 to 2025 was excellent for USDC, as the market value increased by more than 60 % since the end of October to more than $ 56 billion today.
With future interest rate discount expectations in recent months, COINBASE revenue prospects have been significantly strengthened. While trading revenues are very volatile, with transformations in the prices of cryptocurrencies and fluctuations that lead to significant fluctuations in revenue, Coincoin’s stable works have proven to be more stable. We see the improved path and powerful momentum of USDC as a major victory in Coinbase after the challenges faced by USDC in the wake of the failure of Silicon Valley’s failure.
As expected, Coinbase’s success in winning the majority of Custom Bitcoin Etf has proven to be a modest effect on revenue. Guarding fee revenues increased by 119 % to $ 43.1 million. Although the rate of growth in terms of percentage is impressive, Coinbase’s incubation is still very small so that the company’s needle cannot be transferred as a whole.
The author or authors do not have shares in any securities mentioned in this article. Learn about Morningstar editing policies.
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