Shares of Coinbase, the cryptocurrency exchange, experienced a 37% increase in the last week, coinciding with a recent upturn in bitcoin. The company is expected to present strong results in its fourth quarter report.
According to data from MarketWatch and FactSet, analysts predict a strong boost in Coinbase’s revenue for the fourth quarter, with an increase of about 22% over the third quarter, reaching $825 million.
Much of this growth is attributed to significant trading volumes, estimated to almost double from $76 billion in the third quarter to $142.7 billion in the fourth quarter.
In addition, Coinbase is expected to report earnings per share of $0.02 in the fourth quarter, which represents a positive change from the previously reported loss of $0.01 per share in the third quarter.
This increase in earnings coincides with a 16.3% increase in the price of bitcoin over the past seven days, according to data from Coinmarketcap.
On the other hand, rival trading platform Robinhood also experienced an increase in revenues during the fourth quarter, driven by cryptocurrency trading revenues, which rose 10% year-on-year.
Despite these encouraging data, some analysts are not convinced that Coinbase will be able to maintain its momentum in 2024. In a note to investors, JPMorgan analysts set a price of Coinbase’s shares down, based on the unimpressive initial performance of bitcoin spot ETF trading
K. Tovar
Source: Cointelegraph
(Reference image source: @adamantiumnews, X)
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