The company's first report
Coinbase shares rose after the company reported strong quarterly results amid rising bitcoin and other cryptocurrency prices. Coinbase said it will add Dogecoin to its platform within six to eight weeks.
Coinbase (COIN) shares rose 3.4% after the largest US cryptocurrency exchange posted huge revenue and profit growth on the back of incredible growth in bitcoin and other cryptocurrencies.
In its first financial report as a public company, Coinbase reported earnings per share of $3.05, totaling more than $771 million for the quarter, and that revenue was $1.8 billion, up from $191 million a year earlier and an analyst forecast of $1.81 billion.
Coinbase's revenues and profits are dependent on cryptocurrency prices and Coinbase's own digital currency, USD Coi, which is backed by dollars and its platform's trading volume.
Forecasts from Coinbase
Coinbase made an important announcement when it released the report, promising to add Dogecoin cryptocurrency to its platform within 6-8 weeks.
The cryptocurrency, initially launched as a joke, rose 26,000% in the last six months before falling after Elon Musk's words in which he called Dogecoin "vanity".
Coinbase did not give investors predictions on future earnings or earnings estimates, reiterating that a feature of its business is that it is "unpredictable in nature". However, the company expects an estimated 5.5 million to 9.0 million monthly active users throughout the year, depending on cryptocurrency prices.
Cryptocurrency exchange Coinbase went public via a direct listing on Nasdaq on 14 April. Compared to the price on the first day of trading, Coinbase shares were down 19.25% at the close of trading on Thursday.
Analysts say Coinbase is facing a significant increase in competition. However, Haas said the company "welcomes this" as it makes cryptocurrencies popular.
Major players entering the cryptocurrency trading and payment services market include PayPal (PYPL), Mastercard (MA), Goldman Sachs (GS) and Morgan Stanley (MS).
Companies such as MicroStrategy (its bitcoin assets were valued at more than $5bn as of 28 April), Tesla ($1.5bn), Square and others have made large bitcoin purchases.
