Coinbase Books Double Miss In Q1, But Rallies On Bitcoin Three-Month High
While Bitcoin celebrated its return to the $100K Club, the last quarter battered America’s largest crypto exchange. CoinbaseCOIN fell dramatically short of Wall Street expectations amid declining trading volumes. Despite the setback, Coinbase is shelling out $2.9B on derivatives platform Deribit, focusing on long-term ambitions instead of impending struggles.
- COIN reported a $0.24 EPS (vs. $1.93 expected) and $2.03B in revenue (vs. $2.1B expected) — enduring a 95% plunge in net income and a 17% drop in consumer trading volume from Q4.
- It’s $698M in subscription and services revenue also missed expectations of $702M — while Q2’s guidance of $600-680M also fell short of analysts’ $703M forecasts, per FactSet.
Shopping spree: With Bitcoin reaching its highest levels since January, Coinbase couldn’t have chosen a better time to announce “one of the most significant [crypto] deals ever.” By paying $700M in cash and $2.2B in stock to acquire the world’s largest options trading platform for BTC and ETH,COIN aims to address a historical weakness. The deal paves the way into derivatives markets, capturing wider transaction volumes and beefier margins. With Bitcoin bouncing back and Trump’s crypto-friendly stance, maybe we’re due to see laser eyes on social media again.