Coinbase revenue surges more than 130% driven by postelection crypto rally

Core Insights - Coinbase reported better-than-expected fourth-quarter results, achieving its largest quarterly revenue in three years, driven by a significant post-election rally in cryptocurrency prices [1][2] Financial Performance - The company reported a net income of $1.3 billion, or$4.68 per share, compared to $273 million, or$1.04 per share, in the same period last year [2] - Revenue reached $2.3 billion, up from$953.8 million year-over-year, with transaction revenue more than doubling to $1.56 billion, surpassing analyst estimates of$1.29 billion [3][6] - Total trading volume was $439 billion, reflecting a 185% increase year-over-year, with consumer trading volume rising 224% and institutional trading volume increasing 176% [3] Market Drivers - The growth in trading volume was attributed to higher levels of cryptocurrency asset volatility and increased average crypto asset prices, particularly influenced by the launch of bitcoin ETF products and the election of a pro-crypto President and Congress [4]