Coinbase Global (NASDAQ:COIN) delivered a blowout fourth-quarter performance, with revenue surging 88% quarter-over-quarter as the cryptocurrency exchange benefited from higher trading volumes and rising crypto asset prices. However, the company’s shares dropped over 6% intra-day today.

For Q4 2024, total revenue reached $2.27 billion, far exceeding analyst expectations of $1.87 billion. The company's transaction revenue skyrocketed 172% quarter-over-quarter to $1.6 billion, reflecting a surge in crypto market activity.

Subscription and services revenue grew 15% to $641 million, driven by increased staking, custody services, and higher USDC-related assets. Coinbase reported net income of $1.3 billion, with $476 million stemming from pre-tax gains on its crypto asset investments. For the full year, the company more than doubled its revenue to $6.6 billion, generating $2.6 billion in net income and $3.3 billion in adjusted EBITDA. The exchange bolstered its balance sheet, increasing total assets to $9.3 billion at the end of Q4, up $1.1 billion from the prior quarter.

Looking ahead, Coinbase expects Q1 2025 transaction revenue to reach approximately $750 million by February 11, with subscription and services revenue projected between $685 million and $765 million.