(AOF) – Coinbase shares soared by more than 15% to $191.37, the return to favor of cryptocurrencies at the end of last year allowing it to post profits well above expectations. This good news for the cryptocurrency exchange platform comes as the capitalization of bitcoin rose above $1,000 billion on Wednesday for the first time since December 2021. It benefits from the success of the spot Bitcoin ETFs launched in United States on January 11. Their collection has reached $2.8 billion since that date, according to Bloomberg.
In the fourth quarter, Coinbase posted a net profit of $273 million, or $1.04 per share, compared to a net loss of $557 million, or -$2.46 per share, a year earlier. The consensus was for 2 cents per share.
Net revenues rose nearly 50% to $905 million, but the market was targeting $826 million. Transaction-related revenue jumped more than 64% to $529.35 million.
Coinbase benefited from the rise in cryptocurrencies in anticipation of the launch of spot Bitcoin ETFs in the United States.
Regarding its outlook for the first quarter of 2024, the group expects revenues between $410 million and $480 million for services and subscriptions. As of February 13, the group has already generated $320 million in transaction-related revenue.
Yesterday, JPMorgan raised its recommendation from Overweight to Neutral on Coinbase and maintained its price target of $80. The analyst believes that Bitcoin’s rise is helping to improve flows into bitcoin ETFs, leading to a rise in Bitcoin and other cryptocurrencies.
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