Coinbase's first quarter profit plummeted, it increased its purchase of Bitcoin and recognized nearly 600 million magnesium in unrealized losses

The U.S. cryptocurrency exchange Coinbase released its first-quarter financial report, showing revenue growth but decreased profits due to significant price volatility in the digital asset market. In the first quarter, Coinbase added $153 million in crypto assets for long-term investment, primarily focusing on BTC, demonstrating its confidence in Bitcoin's long-term value. However, it also recognized $597 million in unrealized losses. First-quarter revenue grew by approximately 24% year-on-year to $2 billion, but net income declined 94% to $65.61 million, or 24 cents per share. Due to the crypto market's downturn, overall trading revenue declined from the previous quarter but still grew 17% compared to the same period last year. Coinbase was affected by crypto asset price fluctuations, especially staking rewards' price changes during receipt and sale. This quarter, it recognized $34.4 million in expenses from operational crypto asset holdings. As Coinbase evaluates its cryptocurrency holdings at market prices, it significantly increased its BTC holdings for investment purposes while recognizing $597 million in unrealized losses. Circle's stablecoin USDC has risen from $33 billion to $68 billion over the past year, driven by crypto market recovery, institutional demand, on-chain adoption, and Coinbase International Exchange trading activity. In February, Coinbase launched the USDC Boosted Rewards program, offering up to 12% APY on USDC in perpetual contract portfolios, capped at $1 million. Coinbase added $153 million in crypto assets in the first quarter, primarily investing in BTC. As of 3/31, its long-term investments included: - BTC: 9,267 coins (6,885 in December) - Ethereum: 137,334 coins (115,700 in December) Investment-held crypto assets: $1.3 billion Crypto assets as collateral: $598 million Total liquid resources: $11.8 billion Coinbase announced the acquisition of Deribit, a crypto derivatives exchange, for $2.9 billion. Industry analysts welcome this move, as it will enable the U.S. exchange to immediately conduct global derivatives trading and provide institutional-grade infrastructure.