By
Temitope Olatunji
April 18th, 2024
Coinbase revealed that the price of Bitcoin and the volatility of crypto assets influenced its MTUs and trading volume.
American crypto exchange platform Coinbase has released its first-quarter (Q1) estimated earnings results for 2021 ahead of its public debut scheduled for the 14th of April. The financial result revealed that Coinbase has grown over the last quarter, which ended on the 31st of March.
Coinbase Q1 2021 Earnings Results
According to the Q1 2021 result published on the 6th of April, Coinbase pulled in revenues worth $1.8 billion. Also, the company noted 6.1 million monthly transacting users (MTUs) in the quarter. This is about a 117% increase quarter-over-quarter and 3.3 million additional users compared to data reported in 2020 Q4. The increase in transacting users served as one factor that fueled Coinbase’s revenue for the quarter.
In addition, Coinbase noted 56 million verified users on its platform. In comparison, it had 43 million verified users in the last quarter of 2020. The total amount of assets on Coinbase totals $223 billion. The assets represent about 11.3% crypto asset market share. Out of the total assets on the platform, $122 billion worth of assets belonging to institutions. Also, the assets on Coinbase are almost 150% jump from $90 billion, quarter-over-quarter.
Furthermore, Coinbase estimated $335 trading volume in the first quarter of 2021 with a net income of about $730 million to $800 million. Adjusted EBITDA over the quarter was approximately $1.1 billion.
Coinbase’s Monthly Transacting Users (MTUs)
In the announcement, Coinbase further revealed that the price of Bitcoin and the volatility of crypto assets influenced its MTUs and trading volume.
Senior fintech research analyst at Susquehanna International Group, James Friedman, noted that Coinbase monthly users in the first quarter “more than doubled.” He added that revenue also climbed three times higher than the last quarter in 2020. Friedman added:
“How do you have users doubling and growth three times that? It happens because volume per user also increased. That’s the increase in the price of bitcoin.”
During the earnings call, Coinbase CEO Brian Armstrong said that the company would be providing more assets to its customers. He also said that Coinbase users would have more access to DeFi applications.
In the report, Coinbase stated “three possible scenarios for annual average MTU.The company classified the “scenarios” into high, mid, and low. In the high performance, Coinbase expects MTUs to grow up to 7 million, provided there is an increase in the crypto market cap. Coinbase noted 5.5 million MTUs, assuming a slight decline in MTUs recorded in the first quarter of the year, in the mid scenario. Also, Coinbase expects 4 million MTUs under its low scenario performance.
CoinDesk mentioned Coinbase CFO Alesia Haas’s comment on the company’s monthly transacting user. “For the last two years we’ve seen average net revenue per range between $34 million and $45 per month,” said she at the earnings call.