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Coinbase shares dipped after the company reported first-quarter earnings that fell short of Wall Street expectations, even though revenue from stablecoins continued to grow. The crypto giant saw mixed results during the first quarter of 2024.
In the three months ending March 31, Coinbase earned $65.6 million, or 24 cents per share—significantly down from $1.18 billion, or $4.40 per share, the same time last year. When excluding the effects of crypto investments, adjusted earnings came in at $527 million, or $1.94 per share.
Total revenue reached $2.03 billion, up from $1.64 billion a year earlier, but still shy of analysts’ expectations of $2.12 billion, according to LSEG. Of that, $1.26 billion came from transaction revenue, while subscriptions and services added $698.1 million.
Consumer trading volume dropped 17% from the fourth quarter to $78.1 billion, a notable pullback from the heightened activity seen following Donald Trump’s presidential win and expectations of crypto-friendly regulation. Institutional trading also fell 9%, totaling $315 billion.
While the crypto market enjoyed a few positive headlines in Q1—such as Bitcoin reaching an all-time high in January—uncertainties in April, particularly around Trump’s proposed tariff policies, created a volatile environment and reduced risk appetite among investors.
Despite this, Coinbase reported that April alone generated approximately $240 million in transaction revenue. For Q2, it forecasts subscription and services revenue between $600 million and $680 million.
Coinbase also announced its largest acquisition to date: the $2.9 billion purchase of Deribit, a Dubai-based crypto derivatives exchange. This move marks a major expansion beyond the U.S. market. Still, Coinbase stock dropped 2% in after-hours trading and remains down nearly 17% for the year.