Coinbase stocks went up 3% during late trading hours on Thursday after reports came in about the sudden rise in revenue and net income during the first quarter of 2021 as the crypto exchange industry capitalized on the boom of the crypto markets. The reports were significantly similar to the estimates delivered on April 6th by Coinbase, a week before its debut to the public.
Coinbase’s income reports showed $3.05 earnings per share and revenue of $1.80 billion, an increase of $585 million from the previous quarter. Coinbase’s net profit for the quarter went over $771 million, four times greater than the fourth quarter of 2020 which was about $177 million, 24 times higher than the year prior.
The crypto exchange company announced its plan to enlist Dogecoin on their exchange platform within six to eight weeks. Inspired by the Shiba Inu meme, Dogecoin prices went up to 26,000% in six months before plunging down after Tesla CEO Elon Musk called Dogecoin a “hustle” during his debut on Saturday Night Live.
Coinbase’s future depends on the performance of major cryptocurrencies such as Bitcoin and Ethereum. 94% of the company’s revenue was generated from the transaction fees from trading in the first quarter. On another note, the company reports showed the doubled increase in Bitcoin prices alongside Ether’s prices that tripled during the same quarter.
From 2.8 million to 6.1 million USD, the company’s users doubled from the previous quarter to the next. Coinbase’s trading volume tripled from the first quarter due to the 56 million users along with the price surges in the crypto market. Coinbase stocks opened at $381 per share and were valued at $100 billion during the previous month’s direct listing. This became a landmark moment for the crypto industry.