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Coinbase shares rose 10% today following Robinhood’s Q4 2023 earnings report, which revealed that the popular trading app generated a substantial profit from its cryptocurrency trading business.
Robinhood reported that its transaction-based revenues in Q4 2023 increased by 8% compared to the same quarter the previous year.
In a press release, the company stated that the increased profit-taking was “primarily driven by cryptocurrencies revenue of $43 million, up 10%.” An accompanying presentation noted that notional crypto trading volume rose by 89% compared to the previous quarter, driven by a 20% increase in customers placing trades and a 58% increase in estimated trading volume per trader.
Given the centrality of crypto trading to Coinbase’s operations, many investors suspect a similar success story in tomorrow’s report.
Meanwhile, Robinhood’s Chief Financial Officer (CFO) Jason Warnick stated during the company’s quarterly earnings call that the US’s recently approved Bitcoin spot market ETFs currently account for approximately 5% of the total crypto trading volume on the platform.
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Coinbase and Robinhood Make Plans
Coinbase may be defending against a lawsuit filed by the US Securities and Exchange Commission for allegedly selling securities without a license, but the NASDAQ-listed company has not allowed the pressure to derail its strategic plans.
At the end of January, the exchange announced the addition of former British Finance Minister George Osborne to its advisory council. Given Osborne’s experience overseeing Britain’s financial system, the move is tactical for Coinbase, which has outlined plans for global expansion.
This week, the company launched a collaboration with wallet provider Ledger to integrate Coinbase Pay into the Ledger Live mobile wallet application. This integration allows Ledger users to buy crypto on Coinbase directly through their Ledger app and have it custodied by Ledger, streamlining and reducing errors in both the transaction and custody processes.
Meanwhile, Robinhood is also expanding its crypto offerings globally. In December, it launched commission-free crypto trading in European Union territories.
The post Robinhood’s Strong Crypto Performance Sets Positive Tone for Coinbase Earnings appeared first on Cryptonews.
