Coinbase Global ( COIN 5.01% ) is firing on all cylinders right now. The leading cryptocurrency brokerage and exchange operator posted a revenue gain of 116% in the first quarter (ended March 31).
And in stunning fashion, it produced $1.2 billion in net income, translating to a fantastic margin of 74%. Skyrocketing crypto prices are undoubtedly benefiting this business, whose shares have jumped 558% since the start of 2023.
But with the top cryptocurrency stock still trading 35% below its peak price, you might be wondering if Coinbase is a no-brainer buy right now. Strong momentum Coinbase makes its money chiefly from facilitating cryptocurrency transactions for consumers and institutions, earning a fee in the process. Revenue here was up almost threefold from the 2023 first quarter.
It helps that the overall crypto market has gained 119% in value over the past 12 months. And executives like to point out that increased volatility also provides a boost. The company is finding success in different products, like its Coinbase Prime offering for institutional investors and Coinbase One for retail traders.
And with an ongoing push to have a bigger presence outside the U.S., the company generated 17% of its total revenue in the first quarter from international markets.
To provide more stability and predictability in its business model, management has emphasized the subscription and services segment, which includes things like stablecoins, staking rewards, and custodial services. Th.