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February 15, 2024Coinbase surges 37% as BTC pumps and analysts tip strong Q4 results
Shares in the cryptocurrency exchange Coinbase have surged by 37% over the past week, mirroring a recent uptick in Bitcoin (BTC) prices. Analysts anticipate robust financial results when Coinbase reports its fourth-quarter earnings on Thursday.
Revenue Expectations:
Analyst consensus suggests a significant revenue increase for Coinbase in the fourth quarter, with estimates projecting a growth of approximately 22% from the third quarter to $825 million. Strong trading volumes are anticipated to drive this revenue boost, with analysts forecasting nearly doubling trading volumes from $76 billion in Q3 to $142.7 billion in Q4.
Coinbase is expected to report a fourth-quarter earnings-per-share of $0.02, marking a positive turnaround from the previously reported loss of $0.01 per share in the third quarter.
The recent 16.3% increase in the price of Bitcoin over the past seven days has contributed to the positive sentiment surrounding Coinbase. Competitor platform Robinhood also experienced an uptick in revenue in the fourth quarter, driven by increased crypto trading revenue.
Despite the optimistic outlook, some analysts remain cautious about Coinbase’s prospects in 2024. JPMorgan analysts, in a note to investors on Jan. 22, predicted a decline in Coinbase’s share price, citing an “underwhelming” start to spot Bitcoin ETFs trading.
Spot Bitcoin ETFs Performance:
Although spot Bitcoin ETFs initially faced challenges, recent days have seen a significant uptick in net inflows. On Feb. 13, BlackRock’s IBIT alone generated $493 million worth of inflows, while all 10 ETFs collectively witnessed $631 million in net inflows on the same day. Coinbase serves as the custodian for eight out of 10 spot Bitcoin ETF providers, including BlackRock, iShares, and Valkyrie.
Coinbase is embroiled in a lawsuit with the United States Securities and Exchange Commission (SEC), accused of violating SEC rules and selling unregistered securities. However, some industry experts, like crypto lawyer James Murphy, express confidence that Coinbase will prevail in the lawsuit.
