Coinbase's first-quarter revenue exceeds expectations, shareholder letter discusses SEC lawsuit and political donations.

Coinbase stated in a shareholder letter on Thursday (2nd) that its first-quarter revenue reached $1.58 billion, with a net profit of $1.17 billion, mainly driven by retail users. Institutional clients accounted for the majority of the trading volume. In contrast, the company had a loss of $79 million in the same period last year.

Demand driven by the launch of a U.S. Bitcoin spot ETF in January has led to a surge in trading volume and mobile app downloads for Coinbase.

Coinbase (COIN) closed at $228.85 on Thursday, with the stock falling about 2% in after-hours trading. The company's stock has risen nearly 30% this year, while Bitcoin has gained about 40%.

Coinbase also addressed its ongoing legal issues with the U.S. Securities and Exchange Commission (SEC) and political donation issues in the shareholder letter. The company mentioned that the Manhattan federal court dismissed the SEC's allegations against Coinbase for acting as an unregistered broker through its wallet issuance in March of this year, but also noted that the court rejected the company's request to dismiss the case entirely.

This article is from Zombit:https://zombit.info/coinbase-2024-q1-revenue-top-forecasts-talks-lawsuit-and-political-donations/

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