Jamming I have just made the greatest acquisition of a cryptographic company in the history of industry. Thursday, the largest crypto exchange in the United States announced that it would pay $ 2.9 billion for a deribit, a derived platform that allows traders to bet on future cryptocurrencies like Bitcoin.
The leaders predicted that the acquisition would be a boon for the results of Coinbase while the company continues to diversify its income. “It was always profitable,” said Emilie Choi, the CO of the exchange, during a call for results Thursday, in reference to Deribit. “It strengthens our business by giving us market leadership within options, which we plan to grow and improve profitability.”
But the predictions of increased profitability coinbase coincided with a sharp drop in profits in the first quarter. Its net income fell from a quarter of 95% to $ 66 million as the cryptographic trading volume on the platform has decreased.
And the scholarship experienced a decrease of 10% over the quarter of 10% of net income to $ 1.96 billion, not exceeding analysts’ expectations. His profits by a share of 26 cents were much lower than the consensus of $ 1.93, according to the Wall Street JournalAnd Coinbase shares fell 3% in the trade after opening hours.
Party and famine
Coinbase activities are often delighted and do the family, as an amount as crypto trading volumes increase and shrink quickly when trading volumes calm down. Its profits are similarly and decreasing, clear losses during the crypto winter of 2022 and 2023 to a record of $ 1.3 billion earn in the fourth quarter of 2024.
But even on the cryptography market, Coinbase revenues are specialized. A large part comes from the trading of crypto spot in the United States, or merchants in the United States buying and selling cryptocurrencies according to current prices. Disconnection, however, is intended exclusively for non-American customers and allows them to exchange derivatives, financial products that allow investors to speculate, with a lever effect, on future prices of cryptocurrencies.
Coinbase avoided the launch of derivatives in the United States due to the historically unfavorable regulatory status of crypto among American regulators. However, the crypto exchange made movements to establish an international footprint. In 2023, he open A subsidiary of Bermuda to respond to a non -American audience.
Its derbit acquisition is one of its largest initiatives from afar to diversify its income in its vertical crypto trading.
Coinbase sought to do the same in other parts of its activities. In its report on the first quarter results, the scholarship continued to improve what it calls its “subscription and service revenue” from 8% to almost $ 700 million. The category includes the money he makes from the interests he collects on the reserves supporting USDC, a stablecoin managed by Coinbase Partner Circle. It also includes income from its own blockchain base as well as the costs it reveals assets of childcare customers.
“We expect Derebit immediately to improve our profitability and add diversity and sustainability to our commercial income,” said Alesia Haas, CFO of Coinbase, at the end of his remarks prepared during the profit call on Thursday.
This story was initially presented on Fortune.com
