October 3, 2022

Earnings Report Reveals Coinbase Now Head-to-Head With NYSE, NASDAQ

2 min read

“& ldquo; Coinbase is literally the most lucrative exchange on the planet throughout any market and across any location,” & rdquo; Fundstrat’s Thomas Lee tweeted as Coinbase’s Q1 incomes beat leading standard exchanges like NYSE, NASDAQ, CBoE, and ICE.

Coinbase Earnings Report Numbers

The U.S.-based exchange tape-recorded overall profits of $1.8 billion and an EBITDA (Earnings before tax, devaluation, and amortization) of $1.1 billion. EBITDA represents a company’s operating earnings without any accounting changes, tax, or interest on borrowings.

The earnings of the exchange is in between $700-$800 million. This year’s projected earnings is $7.2 billion with an EBITDA of $4 billion.

For comparison, the EBITDA of Intercontinental Exchange (ICE), the moms and dad business of NYSE and Bakkt, last year was $7.8 billion. At the exact same time, NASDAQ reported incomes prior to tax and interest of $1.3 billion.

The financials of Coinbase currently look more powerful than the world’s largest exchanges.

Further, PayPal’s Q4 earnings last year was $6.1 billion with an operating earnings of nearly $1 billion. However, Paypal has 377 million users compared to Coinbase’s 56 million user base.

Still, an independent analyst on Twitter, John Street Capital (alias), cautioned about taking Q1 values as a recommendation from a quarter where BTC doubled in price and ETH rose by 150%.

Impact on COIN’s Price

The prominent American exchange saw a trading volume of $533 billion during the evaluation duration.

The estimates suggest that Coinbase is earning 53 basis points (bps) or 0.53% in typical trading fees. Given that trading charges are between 0.04% and 0.50%, the FTX cryptocurrency exchange founder, Sam Bankman-Fried, recommended that “& ldquo; a significant chunk of that earnings is not coming from trading fees, which would be an initially.”

& rdquo; In their very first SEC filing, the exchange had noted that it made 96% from trading income. Thus, a substantial portion of profits might be from mobile app earnings, transaction fees, custodial management fees, and profits from other financial investments.

Coinbase is yet to publish a total breakdown of the revenues.

Because its debut in January, the equity token on FTX has actually acquired 300%, acquiring over 12% in the last two weeks.

Coinbase Pre-IPO token cost chart. Source: FTX

According to their previous report in mid-March, COIN was trading between $200-$375 in personal markets throughout the very first two months of the year. The expected earnings report just slightly affected the rate of Coinbase pre-market shares on FTX.

The token was trading at $485 at press time, 3% higher than the previous day.