After massive struggles, Coinbase is back, and the largest cryptocurrency exchange company reported a massive 11 percent stock increase, also claiming massive earnings in its Q4 2023 report. The renowned crypto company posted bullish returns in this latest report, earning massive from its stablecoins, other products, and reserves due to its higher interest income.
One year ago, the company's report reflected a significant $557 million loss, and in the previous quarter, Q3 2023, it also saw losses.
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Coinbase shared their latest Q4 2023 earnings report in a shareholder letter released earlier, and the company finally made headway with an 11 percent stock increase thanks to a great last quarter. The company said that its total revenue in 2023 was $3.1 billion, and a 2023 net income of $95 million, also reducing its debt by a total of 12 percent or as much as $413 million.
For Q4 2023 alone, the company generated a net income of $273 million, and its fourth-quarter total revenue saw a 41 percent jump, reporting $954 million for the last quarter alone.
We diversified our full-year 2023 total revenue base of $3.1 billion by generating $1.4 billion in subscription and services revenue. Meanwhile, our balance sheet strengthened as we increased our total $USD resources to $5.7 billion while simultaneously reducing total debt by 12%.
Bullish Returns from Coinbase, Stablecoin's Success
According to Decrypt.co, this was a massive progression for Coinbase as the company struggled in the past year, particularly with a reported $2 million loss in Q3 2023. The company relayed bullish returns and also credited their success thanks to interest earned via the USD Coin (USDC) stablecoin that helped increase its numbers thanks to its 18 percent jump to $171.6 million.
Coinbase and What it Brings to Crypto
In the last year alone, Coinbase faced massive scrutiny from crypto regulators around the world, particularly from the United States Securities and Exchange Commission (SEC). Back in March, the company received a Wells Notice from the SEC, and this led to a significant 15 percent share drop in the market for Coinbase, centering on several violations via the Coinbase Earn service.
However, it was not the end of the world for Coinbase, and the renowned platform from Brian Armstrong proceeded headstrongly and took the fight against the SEC. The company sued the SEC for their "lack of response" regarding Coinbase's petition over crypto industry regulations, saying that the regulatory agency was silent for over a year regarding their inquiries.
2023 was not that massive for the crypto industry, affecting massive corporations like FTX and Binance, especially with their executives' lawsuits and later proven to be guilty of the accusations. However, one crypto company stood strong, with Coinbase rallying past the challenges in their business, showing off a strong 4th quarter in 2023, and celebrating the 11 percent jump in its stocks.
