- Coinbase shares are up.
- The development follows the exchange’s first profit in a long time.
- The exchange is still facing challenges that threaten its profitability in the U.S.
Shares of cryptocurrency exchange Coinbase surged on Friday in U.S. premarket trading following the company’s first profit in two years.
On February 15, the largest crypto exchange by trade volume in the U.S. reported a net income of $237 million in Q4 2023, the first profit since Q4 2021, when the previous crypto boom was still raging.
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Coinbase reported $905 million in net revenue in the fourth quarter of 2023, up nearly 50% from $605 million in the previous year. The surprising fourth-quarter performance sent the exchange’s shares up nearly 12%.
Coinbase Shares Surge 12% in U.S. Premarket Trading
Coinbase Global shares rose 12% before the bell on Friday as trading volume surged on the exchange, fueled by optimism around spot bitcoin exchange-traded funds (ETFs).
As of press time, the stock was trading at $189.20 and might hit its highest level this year if the trend holds. With the current level, Coinbase is looking forward to adding nearly $5 billion to its market value.
Despite the impressive performance, Coinbase faces some challenges in the U.S. The exchange is currently entangled with the SEC in a lawsuit, with the regulator accusing Coinbase of operating an unlicensed crypto securities exchange, broker, and clearing agency.
Coinbase’s future operations and earnings are also exposed to risk, thanks to a crypto law lacuna in the U.S. For this reason, the exchange is currently lobbying Washington for more clarity in the digital assets space through its Stand with Crypto initiative.
Read how Coinbase wants to enhance trading volumes with zero fees:
Coinbase Promises Zero Fees to Entice High Volume Traders
Stay updated on Coinbase’s reformed USDC pricing policy:
Here’s How Coinbase Is Reforming Its USDC Pricing Policy
