It merely tied the Ethereum blockchain for trading volume and trading revenue. Moving along, Bitcoin’s era of dominance in terms of trading volume and trading revenue generation at Coinbase is clearly over. Despite lower volume, retail trades were worth $2.185 billion in revenue in Q4 2021, while institutional trades only generated $90.8 million in revenue.
Up top we can see that retail trading activity in volume terms remains a fraction of its institutional volume bear in mind, however, that retail investors generate not only the vast bulk of Coinbase’s trading revenues, but also the preponderance of its total top line. The following chart is rich in information: Moving past the numerical nuts and bolts of corporate finance, what can we glean from the Coinbase quarter as it relates to the crypto world? Lots. However, we’ll note that estimates for Coinbase’s revenue and profit were rather wide heading into its call, with revenue estimates ranging from $1.19 billion to $2.44 billion, per data provided by Yahoo Finance. Investors had expected Coinbase to report $1.94 billion in revenues, and earnings per share of $1.85. The company also reported GAAP earnings per share of $3.92, on a diluted basis, in the final quarter of last year. The company’s massive growth in top-line led to huge profitability gains, with its net income soaring from $176.8 million in the final three months of 2020 to $840.2 million in Q4 2021. In the fourth quarter of 2021, Coinbase generated $2.50 billion in total revenue, up from $585.1 million in the year-ago quarter.
However, citing a “decline in crypto asset volatility and crypto asset prices,” Coinbase said that it expects retail monthly transacting users (MTUs, in its parlance) and total trading volume to decline sequentially in the first quarter. The company bested investor expectations in the trailing period.
Shares of Coinbase, the American crypto trading giant, initially soared when it reported its Q4 2021 earnings today, but investors quickly sold off the spike bringing the stock price down as much as 9%, hovering just above an all-time low.
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