Analysts had expected revenues to be lower in Coinbase’s fourth-quarter earnings reports.
Analysts attributed Coinbase’s higher-than-expected fourth-quarter earnings to USDC interest income. The company suffered losses due to regulatory uncertainties in the US.
Coinbase Losses Less Than Expected Due to USDC Interest Revenues
Regulatory uncertainties in the US are negatively affecting players in the crypto industry. The recent involvement of the SEC on crypto staking, crypto custody services and stablecoin issues through Paxos has brought question marks in the industry.
The pressure that the US Securities and Exchange Commission (SEC) has put on the crypto sector recently was reflected in the earnings of the companies. One of these companies was Coinbase, the largest cryptocurrency exchange in the USA. Coinbase recently announced its Q4 earnings reports. While analysts expected the company to announce higher losses, this situation did not turn out as expected.
Coinbase reported net income of $605 million, above analyst estimates of $588 million. Analysts noted that Coinbase’s fourth-quarter revenue beat estimates thanks to USDC interest income.
Commenting on the subject, analyst John Todaro said the following about Coinbase’s revenues above expectations:
“Last quarter was done with much higher-than-expected interest income in USDC.”
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