In the first quarter of 2024, cryptocurrency exchange Coinbase witnessed a notable resurgence, buoyed by a combination of robust market performance and the introduction of a Bitcoin exchange-traded fund (ETF). Reporting a total revenue of $1.6 billion for the quarter, along with a net income of $1.2 billion and an adjusted EBITDA of $1 billion, the exchange showcased strong financial performance. This adjusted EBITDA figure marks a notable increase from the $977.5 million reported in 2023.
Coinbase's net profit received a significant boost from a pre-tax unrealized gain of $737 million on crypto assets, as outlined in its financial report. Ending the quarter with $7.1 billion in capital, including $1.1 billion in net cash raised through the sale of 2030 convertible notes, Coinbase demonstrated a robust financial position. However, the exchange also witnessed an increase in total liabilities, rising to $339.9 million in 2024 from $200.7 million in the first quarter of 2023.
Consumer transaction revenue experienced a substantial uptick, reaching over $935 million, representing a sequential increase of 99%. This surge was accompanied by a notable rise in trading volume, totaling $56 billion for the quarter, marking a 93% increase and outpacing the growth of the U.S. spot market, which grew by 91% during the same period.
Institutional trading also saw significant growth, with revenue reaching $85 million, marking a sequential increase of 133%. Trading volumes on Coinbase Prime, the exchange's institutional client platform, soared by 105% to $256 billion, surpassing the growth rate of the U.S. spot market. Coinbase attributed this growth to the success of its institutional platform and the introduction of the Bitcoin ETF, which contributed to the enhancement of its product suite and customer engagement.
Additionally, Coinbase reported a 64% increase in first-quarter custodial services revenue, amounting to $32 million. This growth was primarily driven by rising crypto asset prices and revenue generated from the Bitcoin ETF. Notably, Coinbase serves as custodian for eight of the 11 newly launched BTC funds, ending the quarter with $171 billion in assets under custody.
