- Coinbase smashed Q4 earnings, fueled by crypto market bounce and new spot Bitcoin ETFs.
- Stablecoin services and homegrown Base blockchain are their 2024 focus.
- Interest rate changes & ETF shifts might be headwinds.
Coinbase blew past Q4 earnings expectations last week, buoyed by an end-of-year crypto resurgence. The exchange posted $953.8 million in revenue and $1.04 in EPS, crushing analyst predictions.
Now, with tailwinds from favorable regulations and a recovering crypto market, Coinbase is aiming to capitalize on stablecoins and its Base layer-2 blockchain as key 2024 priorities.
How does Coinbase plan to Grow in 2024?
The company called attention to its custody arrangements with 8 of 11 new spot bitcoin ETF issuers as a growth engine for its stablecoin services. As these ETFs accumulate assets, demand for Coinbase’s USD custody solution directly expands.
Beyond stablecoins, Coinbase is also betting on its self-developed Base protocol to enable next-generation decentralized apps and DeFi products.
Challenges ahead for Coinbase
Propelled by over $320 million in estimated Q1 transaction revenue so far, Coinbase seems poised to surpass $1 billion in quarterly revenue for the first time since its 2021 public listing.
While moderating interest rates and shifts towards ETF investing present potential headwinds this year, the exchange succeeded in generating positive cash flow even during crypto’s 2022 downturn.
With the market back on firmer footing, Coinbase enters 2024 with optimism about capitalizing on its stablecoin foothold and Base’s future.
