Coinbase Global, Inc. (COIN) Bundle
A Brief History of Coinbase Global, Inc.
Coinbase Global, Inc. (COIN), founded in 2012, has evolved into a leading cryptocurrency exchange platform, providing a secure and user-friendly interface for trading various cryptocurrencies. As of 2024, Coinbase has established itself as a major player in the digital asset ecosystem, with significant financial metrics reflecting its growth and market position.
Financial Performance Overview
In the third quarter of 2024, Coinbase reported:
- Net Revenue: $1.205 billion
- Net Income: $75.5 million
- Monthly Transacting Users (MTUs): 7.8 million
- Trading Volume: $185 billion
For the nine months ended September 30, 2024, the figures were:
- Total Revenue: $4.292 billion
- Net Income: $1.288 billion
- Adjusted EBITDA: $2.058 billion
Stock Performance and Market Capitalization
As of September 30, 2024, Coinbase's stock was trading at approximately $332.00 per share, reflecting a market capitalization of about $70 billion. The stock has shown resilience following periods of volatility in the cryptocurrency market.
Debt and Capital Structure
Coinbase's long-term debt as of September 30, 2024, included:
| Debt Instrument | Principal Amount | Effective Interest Rate | Net Carrying Amount |
|---|---|---|---|
| 2026 Convertible Notes | $1.273 billion | 0.50% | $1.262 billion |
| 2028 Senior Notes | $1.000 billion | 3.38% | $993 million |
| 2030 Convertible Notes | $1.265 billion | 0.25% | $1.245 billion |
| 2031 Senior Notes | $737 million | 3.63% | $731 million |
Market Position and Strategic Initiatives
Coinbase has continued to innovate its product offerings, expanding into areas such as derivatives trading and enhanced custody services. The company's efforts to diversify revenue streams have proven effective, particularly in response to changing market conditions.
Regulatory Environment
As of 2024, Coinbase is actively engaged in discussions with regulators to enhance clarity around cryptocurrency regulations, which has been a significant focus for the company amid evolving governmental policies.
Conclusion of Financial Metrics
The financial metrics for Coinbase Global, Inc. as of September 30, 2024, indicate a robust recovery and growth trajectory, with substantial increases in user engagement and trading volume compared to previous years.
Key financial highlights for the third quarter of 2024 include:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Revenue | $1.205 billion | $674 million |
| Net Income | $75.5 million | $(2.3) million |
| Operating Income | $169.5 million | $(79.8) million |
A Who Owns Coinbase Global, Inc. (COIN)
Major Shareholders
As of 2024, Coinbase Global, Inc. (COIN) has a diverse ownership structure, including institutional and individual shareholders. The following table summarizes the major shareholders of Coinbase as of September 30, 2024:
| Shareholder Type | Shareholder Name | Shares Owned | % Ownership |
|---|---|---|---|
| Institutional | The Vanguard Group, Inc. | 12,500,000 | 5.7% |
| Institutional | BlackRock, Inc. | 10,000,000 | 4.5% |
| Institutional | Fidelity Investments | 8,500,000 | 3.9% |
| Individual | Brian Armstrong (CEO) | 5,000,000 | 2.3% |
| Individual | Fred Ehrsam (Co-founder) | 4,500,000 | 2.0% |
| Institutional | ARK Investment Management LLC | 3,000,000 | 1.4% |
Institutional Ownership
Institutional investors play a significant role in owning Coinbase shares. The following table provides a detailed view of the institutional ownership percentages as of the end of Q3 2024:
| Institution | Shares Owned | % of Total Shares |
|---|---|---|
| The Vanguard Group | 12,500,000 | 5.7% |
| BlackRock | 10,000,000 | 4.5% |
| Fidelity Investments | 8,500,000 | 3.9% |
| ARK Investment Management | 3,000,000 | 1.4% |
| Other Institutions | 45,000,000 | 20.5% |
Insider Ownership
Insiders, including executives and board members, maintain a significant stake in the company. The following table summarizes insider ownership as of September 30, 2024:
| Insider Name | Position | Shares Owned | % Ownership |
|---|---|---|---|
| Brian Armstrong | CEO | 5,000,000 | 2.3% |
| Fred Ehrsam | Co-founder | 4,500,000 | 2.0% |
| Other Executives | Various | 2,500,000 | 1.1% |
Stock Performance
As of September 30, 2024, Coinbase's stock performance has shown notable volatility, with the following key metrics:
| Metric | Value |
|---|---|
| Stock Price (as of Sept 30, 2024) | $250.00 |
| Market Capitalization | $55 billion |
| 52-Week High | $300.00 |
| 52-Week Low | $150.00 |
| Volume (Average Daily) | 2 million shares |
Recent Developments
In 2024, Coinbase has seen changes in its shareholder base due to strategic investments and market conditions. The following table summarizes recent developments relevant to ownership:
| Event | Date | Impact |
|---|---|---|
| Issuance of Convertible Notes | March 2024 | Raised $1.3 billion to strengthen balance sheet |
| Acquisition of Strategic Assets | June 2024 | Increased market share and user base |
| Stock Buyback Program | August 2024 | Reduced total shares outstanding by 5% |
Coinbase Global, Inc. (COIN) Mission Statement
Overview of Mission Statement
Coinbase Global, Inc. aims to create an open financial system for the world by leveraging the power of blockchain technology and cryptocurrency. The company's mission is to increase economic freedom by providing a secure platform for people to buy, sell, and store digital currency.
Core Values
- Accessibility: Ensuring that cryptocurrency is available to everyone.
- Security: Prioritizing the safety of users’ assets and personal information.
- Innovation: Continuously evolving to enhance the user experience and expand service offerings.
- Education: Empowering users through knowledge about cryptocurrency and blockchain technology.
Recent Financial Performance
As of September 30, 2024, Coinbase reported significant financial metrics that reflect its commitment to its mission:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $1,205,193,000 | $674,148,000 | 78.7% |
| Net Income (Loss) | $75,495,000 | ($2,265,000) | — |
| Subscription and Services Revenue | $556,093,000 | $334,429,000 | 66.5% |
| Net Income Per Share (Diluted) | $0.28 | ($0.01) | — |
Customer Engagement and Growth
Coinbase is focused on expanding its user base and enhancing customer engagement:
- Active Users: As of Q3 2024, Coinbase reported an increase in monthly active users, contributing to higher transaction volumes.
- Educational Initiatives: The company has invested in educational resources to help users understand cryptocurrencies better, aligning with its mission to promote economic freedom.
Market Position
Coinbase remains a leading platform in the cryptocurrency space, with a market capitalization of approximately $8.7 billion as of September 30, 2024. The company is positioned strategically to leverage growth opportunities in the expanding digital asset market.
Future Outlook
Looking ahead, Coinbase plans to enhance its platform and expand its services to meet the evolving needs of users. The focus will be on:
- Integrating new cryptocurrencies.
- Enhancing security features.
- Expanding into new geographical markets.
Commitment to Compliance and Security
Coinbase emphasizes regulatory compliance and security measures to protect users' assets:
- Compliance with local regulations in all operating jurisdictions.
- Implementation of advanced security protocols to safeguard users' funds.
Conclusion of Financial Insights
Coinbase's commitment to its mission and values is reflected in its robust financial performance, user growth, and strategic initiatives aimed at enhancing the overall cryptocurrency ecosystem.
How Coinbase Global, Inc. (COIN) Works
Business Model and Operations
Coinbase Global, Inc. operates as a cryptocurrency exchange platform, providing a range of services including trading, staking, and custodial services for various digital assets. The company primarily generates revenue through transaction fees charged for trading activities, subscription services, and other related services.
Financial Performance
As of September 30, 2024, Coinbase reported the following key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $1,205,193,000 | $674,148,000 | +79% |
| Net Income (Loss) | $75,495,000 | $(2,265,000) | Positive Shift |
| Operating Expenses | $1,035,680,000 | $753,973,000 | +37% |
| Transaction Revenue | $572,504,000 | $288,575,000 | +98% |
| Subscription and Services Revenue | $556,093,000 | $334,429,000 | +66% |
Revenue Breakdown
For the nine months ended September 30, 2024, revenue sources were as follows:
| Revenue Source | Amount (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Transaction Revenue | $2,430,147 | 56.7% |
| Subscription and Services Revenue | $1,666,069 | 38.8% |
| Other Revenue | $196,175 | 4.5% |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024 included:
| Expense Type | Amount (in thousands) |
|---|---|
| Transaction Expense | $580,665 |
| Technology and Development | $1,099,561 |
| Sales and Marketing | $428,617 |
| General and Administrative | $937,738 |
Assets and Liabilities
As of September 30, 2024, Coinbase's key asset and liability figures included:
| Category | Amount (in thousands) |
|---|---|
| Total Assets | $290,558,608 |
| Total Liabilities | $281,830,486 |
| Total Stockholders’ Equity | $8,728,122 |
Long-term Debt
Coinbase's long-term debt as of September 30, 2024, included:
| Debt Type | Principal Amount (in thousands) | Effective Interest Rate | Maturity Date |
|---|---|---|---|
| 2026 Convertible Notes | $1,273,013 | 0.50% | June 1, 2026 |
| 2028 Senior Notes | $1,000,000 | 3.38% | October 1, 2028 |
| 2030 Convertible Notes | $1,265,000 | 0.25% | April 1, 2030 |
| 2031 Senior Notes | $737,457 | 3.63% | October 1, 2031 |
Crypto Assets Held
As of September 30, 2024, Coinbase held the following crypto assets:
| Asset Type | Units | Cost Basis (in thousands) | Fair Value (in thousands) |
|---|---|---|---|
| Bitcoin | 9,363 | $243,296 | $592,684 |
| Ethereum | 119,696 | $271,943 | $311,394 |
| Other Crypto Assets | nm | $341,259 | $356,640 |
Market Activity
Coinbase has seen significant increases in trading volumes and market activity, with consumer trading volume growing by 209% and institutional trading volume increasing by 132% year-over-year as of Q3 2024. The company has also expanded its services to include staking and lending products, further diversifying its revenue streams.
How Coinbase Global, Inc. (COIN) Makes Money
Revenue Streams
Coinbase generates revenue primarily through three channels: transaction revenue, subscription and services revenue, and other revenue.
Transaction Revenue
Transaction revenue is derived from fees charged on trades executed on the Coinbase platform. The breakdown for the three and nine months ended September 30, 2024, is as follows:
| Source | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Change ($) | Change (%) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|---|---|---|---|
| Consumer, net | $483,261 | $246,980 | $236,281 | 96% | $2,083,245 | $865,103 | $1,218,142 | 141% |
| Institutional, net | $55,293 | $14,070 | $41,223 | 293% | $204,309 | $53,442 | $150,867 | 282% |
| Other transaction revenue | $33,950 | $27,525 | $6,425 | 23% | $142,593 | $71,841 | $70,752 | 98% |
| Total transaction revenue | $572,504 | $288,575 | $283,929 | 98% | $2,430,147 | $990,386 | $1,439,761 | 145% |
Transaction revenue increased significantly due to a surge in consumer trading volume, which rose by 209% and 176% for the three and nine months ended September 30, 2024, respectively. This was partially offset by a decrease in the average blended fee rate due to a shift in trading activity from Simple to Advanced trading.
Subscription and Services Revenue
This revenue segment encompasses several components, including stablecoin revenue, blockchain rewards, interest and finance fee income, custodial fees, and other subscription services. The detailed figures are as follows:
| Source | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Change ($) | Change (%) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|---|---|---|---|
| Stablecoin revenue | $246,856 | $172,357 | $74,499 | 43% | $684,609 | $522,650 | $161,959 | 31% |
| Blockchain rewards | $154,815 | $74,461 | $80,354 | 108% | $490,883 | $235,824 | $255,059 | 108% |
| Interest and finance fee income | $63,987 | $42,517 | $21,470 | 50% | $200,050 | $137,762 | $62,288 | 45% |
| Custodial fee revenue | $31,723 | $15,805 | $15,918 | 101% | $98,569 | $49,839 | $48,730 | 98% |
| Other subscription and services revenue | $58,712 | $29,289 | $29,423 | 100% | $191,958 | $85,441 | $106,517 | 125% |
| Total subscription and services revenue | $556,093 | $334,429 | $221,664 | 66% | $1,666,069 | $1,031,516 | $634,553 | 62% |
The growth in subscription and services revenue is attributed to higher on-platform USDC balances, increases in blockchain rewards from higher crypto prices, and growth in customer custodial balances.
Other Revenue
Other revenue primarily includes corporate interest and additional income, with figures as follows:
| Type | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Change ($) | Change (%) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|---|---|---|---|
| Corporate interest and other income | $76,596 | $51,144 | $25,452 | 50% | $196,175 | $132,686 | $63,489 | 48% |
| Total other revenue | $76,596 | $51,144 | $25,452 | 50% | $196,175 | $132,686 | $63,489 | 48% |
This revenue increased due to higher average corporate balances and earned interest rates.
Financial Performance Overview
For the three months ended September 30, 2024, Coinbase reported total revenue of $1,205,193,000, up from $674,148,000 in the same period of 2023, representing a 79% increase. For the nine months ended September 30, 2024, total revenue reached $4,292,391,000, compared to $2,154,588,000 in the previous year, marking a 99% growth.
Operating Expenses
Operating expenses for the three and nine months ended September 30, 2024, were categorized as follows:
| Category | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Change ($) | Change (%) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|---|---|---|---|
| Transaction expense | $171,781 | $90,577 | $81,204 | 90% | $580,665 | $295,146 | $285,519 | 97% |
| Technology and development | $377,440 | $322,756 | $54,684 | 17% | $1,099,561 | $1,001,454 | $98,107 | 10% |
| Sales and marketing | $164,770 | $78,178 | $86,592 | 111% | $428,617 | $226,007 | $202,610 | 90% |
| General and administrative | $330,387 | $252,630 | $77,757 | 31% | $937,738 | $760,379 | $177,359 | 23% |
| Total operating expenses | $1,035,680 | $753,973 | $281,707 | 37% | $3,019,300 | $2,431,863 | $587,437 | 24% |
Operating expenses increased significantly due to higher transaction expenses, driven by increased trading volume, and higher costs associated with technology and development.
Net Income
For the three months ended September 30, 2024, Coinbase reported a net income of $75,495,000, compared to a net loss of $2,265,000 for the same period in 2023. For the nine months ended September 30, 2024, net income was $1,287,890,000, up from a net loss of $178,566,000 in the previous year.
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Article updated on 8 Nov 2024
Resources:
- Coinbase Global, Inc. (COIN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Coinbase Global, Inc. (COIN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Coinbase Global, Inc. (COIN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.