Brian Armstrong, CEO of the US cryptocurrency exchange Coinbase, shared his thoughts on the fourth-quarter financial report released yesterday on the X platform. He stated that Coinbase’s financial situation in 2023 is very robust, with a 45% reduction in costs and faster product delivery through a leaner team, resulting in a net profit of $95 million.
Armstrong mentioned that the company launched Coinbase International Exchange, derivative products, and the Layer-2 network Base, which helps blockchain scalability in the past year. They also played a crucial role as a custodian for eight out of eleven ETF issuers in the approval of Bitcoin spot ETFs. He wrote:
Armstrong also mentioned Coinbase’s goals for 2024, including focusing on increasing transaction fee revenue through international expansion and derivative products, promoting utility of cryptocurrencies through payments such as free instant transfers on the Base network with USDC, and developing Coinbase Wallet into an on-chain super app. The exchange will also continue to promote regulatory clarity for cryptocurrencies through means such as court cases, crypto advocacy group Stand With Crypto, SuperPac donations, and encouraging US government legislation.
Doubts from JPMorgan Analysts
According to CoinDesk, despite the launch of ten Bitcoin spot ETFs helping Coinbase achieve better-than-expected fourth-quarter revenue performance, a JPMorgan analyst expressed skepticism about whether these benefits are as strong as claimed by the exchange.
In a report on Friday, JPMorgan analyst Kenneth Worthington wrote:
Worthington specifically criticized the lack of clarity from Coinbase in this aspect of their business, including providing custody services for eight Bitcoin ETFs. He believes that considering the media attention and market expectations for Bitcoin spot ETFs, especially considering Coinbase’s direct involvement and monetization efforts, the exchange’s management should provide stronger insights into the economic factors related to agreements with issuers.
Worthington added:
Related reports: “Coinbase Exchange’s Q4 Revenue Exceeds Expectations, Stock Price Rises Over 14% After Hours”
