Coinbase announced first-quarter revenues of $1.64 billion, exceeding the anticipated $1.34 billion figure, propelled by a robust Bitcoin surge that has left a significant mark on the cryptocurrency market.

The company's earnings per share stood at $4.40, marking a substantial improvement from the average analyst estimate of $1.09. However, differences in accounting methods may impact comparability. This represents a significant turnaround from the previous year's loss of $78.9 million, or 34 cents per share.

A notable portion of the revenues was attributed to a $650 million mark-to-market gain on digital assets held for investment, following new accounting standards implemented by the company.

Transaction revenue, a crucial income stream for Coinbase, nearly tripled this quarter to $1.07 billion, with consumer transaction revenue alone surging to $935 million, doubling from the previous year.

The company's stock has witnessed a remarkable 30% increase this year, following a nearly 5x surge in 2023, closely correlated with Bitcoin's performance, impacting both trading volumes and demand for Coinbase's additional services.

During the quarter, Bitcoin reached a new all-time high, surpassing $73,000 in March, while Ethereum, the second-largest cryptocurrency, garnered significant interest following its major upgrade earlier in the year. The cryptocurrency sector has attracted substantial institutional investment, particularly after the SEC approved several US spot bitcoin ETFs, many of which have chosen Coinbase as their custody partner.

Despite these positive developments, Coinbase faces challenges, including a legal dispute with the SEC over allegations of unregistered securities sales, a claim to be resolved through a jury trial. Additionally, competition is intensifying, notably from Crypto.com, which has regained market share in recent months.

Coinbase also experienced a notable increase in insider selling during this period. According to Raymond James analysts, insiders, including four C-suite executives, sold shares worth $383 million during the quarter, marking a significant rise from previous periods and the largest since the company's 2021 Nasdaq listing.