Higher trading volumes in bitcoin and other digital tokens after the U.S. election helped cryptocurrency exchange Coinbase (COIN.O) open Thursday’s new tab surpass projections for fourth-quarter profit.
Donald Trump’s triumph in the November presidential election stoked unprecedented interest in cryptocurrencies, pushing bitcoin above $100,000 during the quarter as investors awaited more crypto-friendly legislation under the next administration.
Making the United States the “crypto capital of the planet” is something Trump has pledged to do. In stark contrast to outgoing Chair Gary Gensler, who compared the “Wild West” to the securities sector, Paul Atkins, his choice to head the Securities and Exchange Commission, is well-known for his pro-crypto stance.
“The crypto industry is truly about to enter a golden age. During a post-earnings call, CEO Brian Armstrong stated, “The regulatory burden is easing, and we have an unparalleled opportunity to modernize the financial system and expand economic freedom globally.”
According to figures published by LSEG, Coinbase made $4.68 per share for the three months ending December 31 compared to analysts’ expectations of $1.81 per share.
Pre-tax profits of $476 million on its cryptocurrency asset investment portfolio were part of the profit.
At $1.6 billion, its transaction revenue increased 172%. The subscription and services division, which includes non-trading companies, had a 15% increase in revenue to $641 million.
Revenue increased to $2.3 billion from $953.8 million in the previous year.
As the U.S.’s regulations surrounding cryptocurrency become more clear, its service will only get better, he continued, but in order to protect its market share, it needs to keep moving away from retail and into the institutional trading community.
