Coinbase Earnings Defy The Headlines

Let’s get the BS out of the way first. Yes, Coinbase reported a $667 million net loss in Q4. But, that number that every headline is running with is purely based on paper losses on their investments (BTC, ETH, CRCL).

With that out of the way, let’s focus on what matters. The exchange reported revenues of $1.8 billion in Q4, down 5% from Q3. This occurred as BTC fell nearly 50% from October's high. The company also reported they now have 12 product lines that generate $100 million+ yearly. The company ended the year with $11.3 billion in cash and repurchased roughly $1.7 billion in shares. COIN is up 15% this morning.

The CFTC announced an Innovation Advisory Committee stacked with executives from Coinbase, Kraken, Kalshi, Solana Labs, Robinhood, FanDuel, and DraftKings alongside traditional finance leaders like Nasdaq and the London Stock Exchange. The move follows the agency's withdrawal of a Biden-era rule restricting political and sports betting futures, clearing the way for prediction market platforms to expand. The committee will help the CFTC establish clearer rules for derivatives and crypto markets. Read more →

Earlier this week, Goldman Sachs disclosed $1.1 billion in Bitcoin ETF holdings, according to SEC filings. That's the same Goldman Sachs that in 2020 listed "5 reasons Bitcoin is not an asset class suitable for investment." The bulk of the position sits in BlackRock's IBIT, with smaller allocations to Fidelity's FBTC. With BTC prices down ~21% YTD, don't be surprised if we see more institutional disclosures over the next few days. The next 13F deadline is Tuesday, February 17. Read more →

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