The Coin Craze Boosts Exchanges... US Coinbase Q1 Earnings Surpass Last Year's Total Revenue

Q1 Sales Surpass Last Year's Total Revenue... Asset Value Reaches 100 Trillion Won

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] Coinbase, the largest Bitcoin exchange in the United States, announced that its revenue for the first quarter of this year is expected to surpass its total revenue from last year.

According to Bloomberg on the 6th (local time), Coinbase revealed in its first-quarter earnings forecast report released that day that it expects to generate up to $800 million (approximately 900 billion KRW) in revenue. This is more than double last year's total revenue of $320 million. First-quarter sales are also expected to reach $1.8 billion (approximately 2 trillion KRW), surpassing last year's total sales of $1.3 billion (approximately 1.5 trillion KRW).

Coinbase projected that the average monthly number of traders this year could reach up to 7 million. However, it also noted that the number of traders could fluctuate significantly due to Bitcoin price volatility.

The surge in profits for cryptocurrency exchanges is analyzed to be due to recent expectations that Bitcoin will be incorporated into the institutional framework, leading investors to flock to cryptocurrency trading. If Coinbase successfully lists directly on the Nasdaq on the 14th, it is anticipated that demand for cryptocurrency investment will increase even more sharply.

Bloomberg reported, "Currently, Coinbase holds an asset value exceeding $90 billion (approximately 100 trillion KRW) in the over-the-counter market," and added, "If Coinbase continues to be valued at this level after its listing, other cryptocurrency-related venture companies are also expected to follow suit with public listings."

Earlier, as Bitcoin's market capitalization surpassed $2 trillion, funds have been pouring into cryptocurrency exchanges worldwide.

In South Korea, Dunamu, the parent company of Upbit, the country's largest cryptocurrency exchange, is also expected to see its operating profit for this year reach 351 billion KRW, more than triple last year's operating profit of 95.2 billion KRW. Dunamu is also reportedly considering a listing on the U.S. stock market.