Coinbase (COIN, Financial), the largest cryptocurrency exchange in the U.S., experienced a revenue increase in the first quarter, but profits fell due to the volatile nature of digital asset prices. The company's Q1 revenue grew approximately 24% year-over-year to $2 billion, though it decreased around 10% from the previous quarter, falling short of the $2.105 billion market expectation. Net profit plummeted 94% year-over-year to $66 million, or $0.24 per share, mainly due to the market valuation of its crypto assets.
CFO Alesia Haas noted that the monthly active users were the second highest for the quarter, with many clients utilizing Coinbase's various services, including staking. CEO Brian Armstrong announced a pilot project for businesses to make payments using stablecoins. Additionally, Coinbase has agreed to acquire Deribit, the largest Bitcoin and Ethereum options exchange, for $2.9 billion, marking a major step into the crypto derivatives market.
Coinbase's April trading revenue was approximately $240 million, and the company anticipates Q2 subscription and services revenue to range between $600 million and $680 million. The acquisition is seen as a strategic move to reduce reliance on investor sentiment and expand services. As of the latest update, Coinbase shares were down 2.8% after hours, with a year-to-date decline of 17%.
