Crypto exchange Coinbase posted its Q1 earnings report on May 8, with both revenue and profit dipping as crypto trading cooled off during the initial three months of the year.
Subscriptions And Stablecoins Bring In More
While trading was sluggish, Coinbase’s subscription and services business generated improved results. Revenue from this segment of the company increased almost 9% to $698 million. The largest contributor was income related to stablecoins.
This segment of the business provides Coinbase with a more stable source of funds, particularly when trading is slow. It’s also an indication that the company is not depending solely on market fluctuations and speculative trades to generate revenue.
Despite lower levels in certain regions, Coinbase reported taking more share in both the spot and futures markets. The company also gained traction in emerging markets such as Argentina and India. It cited “critical registrations” in those countries, enabling it to access more users around the world.
Coinbase also marked a legal milestone, stating a court dismissing its lawsuit against the US Securities and Exchange Commission was a victory for reasonable and balanced regulation. The firm stated the ruling is an endorsement of its effort to bring crypto into the mainstream of finance.
In the same earnings release, Coinbase also revealed a nearly $3 billion agreement to acquire Deribit, a leading crypto derivatives exchange.
Deribit has, according to reports, processed over $1 trillion in trade in 2024 and possesses approximately $30 billion of open interest. According to Coinbase, the deal positions it as the global market leader in crypto derivatives trading.
Featured image from Fortune, Chart from TradingView
