Coinbase shares pop after the company


 Today Coinbase shares pop after the company posts its first quarterly profit in two years. We bring you an inside look at the Africa Tech Summit in Nairobi Kenya and as several crypto companies begin to emerge from bankruptcy we explore what it means for the industry markets and for customers with tied up funds.

I'm Quick business update

. Crypto prices in the red to end the week cover Bitcoin still traded above fifty two thousand dollars as of noon Eastern. The cryptocurrency dipped less than half a percent compared to the day before. Ether dropped more than one and a half percent to the twenty seven hundred dollar level after crossing twenty eight hundred dollars yesterday for the first time since May 2022. And Solana fell more than 4 percent to one hundred nine dollars for the week. Bitcoins up more than 9 percent while Ether jumped nearly 12 percent. All as of noon Eastern.

All right. Let's talk about the top stories. Coinbase shares surging today after the company posted its first quarterly profit in two years. The largest U.S. venue for buying and selling crypto revealed yesterday after the bell that net income totaled 273 million dollars in the fourth quarter. The profit was driven by broad expectations that macro economic conditions will improve this year and the approval of the first spot Bitcoin ETFs in the U.S. The majority of the 10 currently trading spot Bitcoin ETFs use Coinbase for their Bitcoin custodian.


For anybody worried about cannibalization, ETFs have been positive for the industry, which has been additive for Coinbase. We're seeing elevated engagement and net inflows across both retail and institutional Q1 to date. What's even more important is that every institution is now starting to hold crypto. The asset class will be a standard part of every diversified portfolio. Coinbase said that its net revenue was $905 million in the fourth quarter, up nearly 50% from the same period last year.

It said transaction revenues were the primary driver of revenues for the last quarter of 2023 and added that subscription and services revenue remained relatively flat. The company added that consumer trading revenue was nearly 500 million dollars for the quarter. That's 79 percent from the quarter before. In an exclusive interview with CNBC yesterday Coinbase's chief financial officer said that the company didn't have to adjust fees to account for the higher volumes coming through the platform. A lot of the results of our fee rate is just the mixed shift on our platform.

who traded what product in the quarter. And so in Q4, when we saw higher volatility, we grew simple trading, but advanced grew more. And so the growth of those advanced trading customers and the volume per trader led to the fee rate coming down on average in the quarter. But it's purely mixed shift, just math, no change to fees in the fourth quarter. Coinbase shares soared more than 15% by midday today.

Next, crypto companies, investors and a whole lot more came together to discuss leading technology innovations at the Africa Tech Summit in Nairobi, Kenya. That event wrapped up yesterday and CryptoWorld's Mackenzie Segalos was there to find out why stable coins are getting so much attention at the summit. I'm here in Nairobi for the Africa Tech Summit, where I've been speaking with CEOs from across the continent about everything from generative AI integrations into banking to the latest innovations in crypto, DeFi and fintech across Africa.

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