Coinbase Global, Inc.: Comprehensive Company Profile and Financial

Quick Facts / Company Snapshot

Company Name: Coinbase Global, Inc.
Stock Ticker: COIN (Nasdaq Global Select Market)
Total Net Revenue (2024): $6.3 billion
Net Income (2024): $2.6 billion
Total Assets: $22.5 billion
Total Liabilities: $12.3 billion
Stockholders’ Equity: $10.3 billion
Diluted Earnings Per Share (2024): $9.48
Transaction Revenue (2024): $4.0 billion
Subscription and Services Revenue (2024): $2.3 billion
Total Operating Expenses (2024): $4.3 billion
Cash and Cash Equivalents: $8.5 billion
Customer Custodial Funds (Assets): $6.2 billion
Total Crypto Assets on Platform (Custodial): $404 billion
Number of Monthly Transacting Users (MTUs): Metric utilized but specific 2024 total not explicitly tabled in summary; noted as increasing.
Number of Employees: Remote-first workforce; specific headcount not explicitly listed in summary snippet but expenses noted.
Headquarters: Remote-first (No physical headquarters)
Incorporation: Delaware
Key Founder: Brian Armstrong (Chief Executive Officer)

Company Overview

Coinbase Global, Inc. is a leading provider of financial infrastructure and technology for the cryptoeconomy. The company operates under a mission to increase economic freedom in the world. It seeks to update the century-old financial system by providing a trusted platform that makes it easy for customers to engage with crypto assets.

The company provides critical infrastructure for the “onchain” economy and supports builders who share the vision of bringing the world onchain. Onchain activities refer to interactions with blockchain-powered technologies, including self-custody wallets, decentralized apps (Dapps), and open community engagement platforms.

Coinbase differentiates itself through a deep investment in trust, security, and compliance. The platform holds customer assets one-to-one at all times and does not act on customer assets—such as staking, lending, or rehypothecating—without express customer consent. The company prioritizes ease of use, obsessing over quality and craft to make buying, storing, and using crypto simple for all users.

Mission: To increase economic freedom in the world.
Core Strategy: Providing a trusted, compliant platform for the cryptoeconomy.
Operating Model: Remote-first company without a physical headquarters.

Business Segments

Coinbase generates revenue through two primary business segments: Transaction Products and Subscription and Services Products. The company also categorizes its customers into three groups: Consumers, Institutions, and Developers.

Transaction Products

This segment encompasses the fees generated from trading activities on the platform. It is the largest contributor to the company’s net revenue.

2024 Revenue: $3,986.1 million
Percentage of Total Net Revenue: 63.3%

The transaction products segment includes revenue from:

Consumer Trading: Volume-based transaction fees and spreads from retail customers buying, selling, and converting crypto assets.
Institutional Trading: Transaction fees from institutional customers accessing liquidity via Coinbase Prime.
Other Transaction Revenue: Fees from various other transaction-based services.

Operational scope involves providing market infrastructure, trading venues (Coinbase Exchange, International Exchange, Derivatives Exchange), and execution services. Revenue in this segment is highly dependent on trading volume and crypto asset price volatility.

Subscription and Services Products

This segment includes revenue streams that are more recurring in nature and less dependent on immediate trading volumes compared to transaction fees. It has grown significantly to become a meaningful contributor to overall financial performance.

2024 Revenue: $2,307.1 million
Percentage of Total Net Revenue: 36.7%

Operational scope for this segment includes:

Stablecoin Revenue: Revenue generated through arrangements with stablecoin issuers, primarily regarding USDC.
Blockchain Rewards: Revenue from staking activities where Coinbase facilitates customer participation in proof-of-stake networks.
Interest and Finance Fee Income: Income from custodial funds and financing products.
Custodial Fee Revenue: Fees for securely storing crypto assets for customers.
Other Subscription and Services: Includes revenues from Coinbase One, Cloud, and other ancillary services.

History and Evolution

Coinbase was founded in 2012 and underwent a corporate reorganization in April 2014, where Coinbase, Inc. became a wholly-owned subsidiary of Coinbase Global, Inc. The company has evolved from a simple bitcoin wallet and exchange into a comprehensive platform serving the entire cryptoeconomy.

2012: Coinbase, Inc. founded.
2014: Corporate reorganization establishing Coinbase Global, Inc.
2018: Partnered with Circle to launch USDC.
2021: Direct listing of Class A common stock on the Nasdaq Global Select Market.
2022: Acquisition of FairXchange, Inc. (FairX), a derivatives exchange, to facilitate crypto derivatives offerings.
2023: Acquisition of One River Digital Asset Management, LLC (ORDAM).
2024: Launch of “Smart Wallet” technology and significant expansion of the Base protocol L2 blockchain.

The company has historically expanded through both organic product development and strategic acquisitions, positioning itself as a compliant bridge between the traditional financial system and the crypto ecosystem.

Products and Services

Coinbase offers a diverse suite of products catering to consumers, institutions, and developers.

Consumer Trading (Transaction Product)

2024 Revenue: $3,430.3 million
Percentage of Total Net Revenue: 54.5%

This is the company’s flagship offering, providing a platform for retail customers to invest in and trade crypto assets.

Simple Trade: A user-friendly interface for buying, selling, and converting assets with fixed price quotes.
Advanced Trade: A sophisticated interface with real-time charts, order books, and trading tools for experienced traders.
Revenue Model: Fees are generated based on transaction volume and spreads.

Stablecoin Revenue (Subscription and Service)

2024 Revenue: $910.5 million
Percentage of Total Net Revenue: 14.5%

Coinbase generates revenue through its partnership with Circle Internet Financial, LLC regarding USDC.

USDC: A stablecoin redeemable 1:1 for U.S. dollars.
Revenue Model: Coinbase shares in the income generated from the reserves backing USDC based on the circulation of USDC on its platform and generally.

Blockchain Rewards (Subscription and Service)

2024 Revenue: $705.8 million
Percentage of Total Net Revenue: 11.2%

This product allows customers to earn rewards by participating in proof-of-stake networks.

Staking: Customers designate assets to validate transactions on networks like Ethereum and Solana.
Revenue Model: Coinbase takes a fixed percentage commission on the rewards earned by customers.

Institutional Trading (Transaction Product)

2024 Revenue: $345.6 million
Percentage of Total Net Revenue: 5.5%

Coinbase Prime serves institutional clients such as hedge funds, asset managers, and corporations.

Prime Brokerage: Offers smart order routing, execution, and custody.
Revenue Model: Transaction fees based on volume.

Interest and Finance Fee Income (Subscription and Service)

2024 Revenue: $265.8 million
Percentage of Total Net Revenue: 4.2%

This includes income from fiat balances held for customers and financing products.

Scope: Interest earned on customer custodial funds deposited with banks and finance fees from prime financing.

Other Transaction Revenue (Transaction Product)

2024 Revenue: $210.2 million
Percentage of Total Net Revenue: 3.3%

Includes revenue from emerging transaction-based products.

Base Protocol: Revenue from sequencer fees on the Layer 2 blockchain.

Custodial Fee Revenue (Subscription and Service)

2024 Revenue: $141.7 million
Percentage of Total Net Revenue: 2.3%

Fees charged for the secure storage of crypto assets for institutional clients.

Cold Storage: Assets are held in segregated cold storage with institutional-grade security.
Revenue Model: Fees based on assets under custody (AUC).

Coinbase Wallet

A self-custodial wallet software that allows users to store their own private keys and interact directly with decentralized applications (Dapps).

Smart Wallet: Launched in 2024 to simplify onboarding without seed phrases.

Brand Portfolio

Coinbase operates primarily under its master brand but manages several distinct sub-brands and platforms.

Coinbase

The primary consumer-facing brand for trading and wallet services. It represents trust, ease of use, and security in the crypto space.

Coinbase Prime

Target Audience: Institutions.
Profile: An integrated solution for execution, custody, and financing. It is designed to meet the complex needs of institutional investors.

USDC

Nature: Stablecoin.
Profile: Managed via a commercial arrangement with Circle. It is a key pillar of Coinbase’s strategy to bridge fiat and crypto, generating significant high-margin revenue.

Base

Nature: Layer 2 (L2) Blockchain.
Profile: An Ethereum L2 offering fast, cheap transactions. It serves as a platform for developers to build decentralized applications, generating sequencer fees for Coinbase.

Geographical Presence

Coinbase is a remote-first company and does not maintain a physical headquarters. It operates globally, serving customers in over 100 countries.

United States

The primary market for Coinbase’s operations and revenue generation.

Regulatory Status: Registered as a Money Services Business with FinCEN; holds money transmitter licenses in most states; registered with the SEC and CFTC for certain activities.
Operations: Significant portion of technology development and general administrative functions support the U.S. market.

International

Coinbase is actively expanding its international footprint to drive growth.

Germany: Licensed by the German Federal Financial Supervisory Authority (BaFin) for crypto custody and trading.
Singapore: Holds a Major Payment Institution license from the Monetary Authority of Singapore.
Australia: Registered as a digital currency exchange provider.
Canada: Registered as a Restricted Dealer.
Bermuda: Holds a Class F Digital Asset Business License.
Revenue Disclosure: While specific country-wise revenue breakdown is not tabled in the summary, the company emphasizes international expansion as a key strategic pillar.

Coinbase Global, Inc. Comprehensive Company Profile and Financial

Financial Performance Analysis

Coinbase demonstrated robust financial recovery and growth in 2024 compared to the prior year.

Total Net Revenue: Increased significantly from $2.9 billion in 2023 to $6.3 billion in 2024.
Net Income: Shifted from a net income of $95 million in 2023 to a substantial $2.6 billion in 2024.
Adjusted EBITDA: Increased to $3.3 billion in 2024 from $978 million in 2023.

Multi-Year Trend Analysis (Consolidated)

2022:
- Total Revenue: $3.2 billion
- Net Loss: $(2.6) billion
- Operating Expenses: $5.9 billion
2023:
- Total Revenue: $3.1 billion
- Net Income: $95 million
- Operating Expenses: $3.3 billion
2024:
- Total Revenue: $6.6 billion (inclusive of other revenue)
- Net Income: $2.6 billion
- Operating Expenses: $4.3 billion

The trend indicates a massive turnaround in profitability driven by higher crypto asset prices, increased trading volume, and disciplined cost management.

Profit and Loss Analysis

Revenue

Net Revenue: $6,293.2 million (2024)
- Transaction Revenue: $3,986.1 million
- Subscription and Services Revenue: $2,307.1 million
Other Revenue: $270.8 million (Corporate interest and other income).

Operating Expenses

Total operating expenses for 2024 were $4,256.9 million.

Technology and Development: $1,468.3 million (22% of Total Revenue)
General and Administrative: $1,300.3 million (20% of Total Revenue)
Transaction Expense: $897.7 million (14% of Total Revenue)
Sales and Marketing: $654.4 million (10% of Total Revenue)

Profitability Metrics

Operating Income: $2,307.2 million
Operating Margin: ~35%
Income Before Tax: $2,942.6 million
Provision for Income Taxes: $363.6 million
Net Income: $2,579.1 million
Net Income Margin: ~39%

Balance Sheet Analysis

Assets

Total Assets: $22,542.0 million
Cash and Cash Equivalents: $8,543.9 million (Highly liquid position).
Customer Custodial Funds: $6,158.9 million.
Crypto Assets Held for Investment: $1,553.0 million.
Goodwill: $1,139.7 million.

Liabilities

Total Liabilities: $12,265.1 million
Customer Custodial Fund Liabilities: $6,158.9 million (Matches customer assets).
Long-Term Debt: $4,234.1 million.
Current Liabilities: $7,941.3 million.

Equity

Total Stockholders’ Equity: $10,276.8 million
Retained Earnings: $4,960.9 million.
Additional Paid-In Capital: $5,366.0 million.

Liquidity Position

The company maintains a strong liquidity profile with over $8.5 billion in cash and cash equivalents, providing substantial flexibility for operations and strategic investments.

Cash Flow Analysis

Operating Cash Flow

Net Cash Provided by Operating Activities: $2,556.8 million
- Driven primarily by net income of $2.6 billion and adjustments for non-cash items like stock-based compensation ($912.8 million).

Investing Cash Flow

Net Cash Used in Investing Activities: $(282.4) million
- Includes purchase of crypto assets held for investment and capitalization of software costs.

Financing Cash Flow

Net Cash Provided by Financing Activities: $2,828.9 million
- Primarily driven by proceeds from the issuance of convertible notes.

Free Cash Flow

Coinbase generated robust positive operating cash flow, significantly exceeding its investing outflows, indicating strong free cash flow generation capability to fund growth and debt service.

Board of Directors and Leadership Team

Leadership Team

Brian Armstrong: Chief Executive Officer and Chairman of the Board.
Alesia J. Haas: Chief Financial Officer.
Emilie Choi: President and Chief Operating Officer.
Paul Grewal: Chief Legal Officer.
Jennifer N. Jones: Chief Accounting Officer.

Board of Directors

Brian Armstrong: Chairman.
Marc L. Andreessen: Director.
Paul Clement: Director.
Christa Davies: Director.
Frederick Ernest Ehrsam III: Director (Co-founder).
Kelly Kramer: Director.
Chris Lehane: Director.
Tobias Lütke: Director.
Gokul Rajaram: Director.
Fred Wilson: Director.

Subsidiaries, Associates, Joint Ventures

The company operates through various subsidiaries to manage its global operations and specific product lines.

Coinbase, Inc.: The primary operating entity for the US exchange and wallet services. (Delaware)
Coinbase Custody Trust Company, LLC: A New York limited liability trust company providing custodial services. (New York)
Coinbase Credit, Inc.: Handles financing and credit products. (Delaware)
Coinbase Asset Management, LLC: Focuses on asset management services. (Delaware)
Coinbase Financial Markets, Inc.: (Delaware)
Coinbase Derivatives, LLC: Operates the derivatives exchange. (Delaware)
CB Payments, Ltd: Operating entity for the United Kingdom.
Coinbase Europe Limited: Operating entity for Europe (Ireland).
Coinbase Ireland Limited: (Ireland)
Coinbase Custody International Limited: (Ireland)

Note: Ownership percentages are generally 100% for consolidated subsidiaries unless otherwise noted in specific joint venture disclosures, which were not explicitly detailed with separate revenue percentages in the provided exhibit list.

Physical Properties

Coinbase is a remote-first company.

Headquarters: None. The company does not maintain a traditional headquarters.
Offices: The company leases small offices in various locations globally to facilitate in-person collaboration where necessary, but these are not the primary drivers of its operations.
Leases: As of December 31, 2024, the company had operating lease liabilities of approximately $85.8 million (long-term).

Segment-wise Performance

Transaction Revenue Performance

2024 Revenue: $3,986.1 million (Up 162% YoY from $1,519.7 million in 2023).
Drivers:
- Consumer: Increased by $2.1 billion due to a 195% increase in trading volume.
- Institutional: Increased by $255.4 million driven by a 139% increase in trading volume.
- Performance: Highly sensitive to market volatility and crypto asset prices.

Subscription and Services Performance

2024 Revenue: $2,307.1 million (Up 64% YoY from $1,406.9 million in 2023).
Drivers:
- Stablecoin: Increased by $216.2 million due to higher average USDC balances and market capitalization.
- Blockchain Rewards: Increased by $374.9 million primarily due to higher crypto asset prices (Solana/Ethereum).
- Performance: Showed strong growth, validating the strategy to diversify revenue beyond pure trading fees.

Founders

Brian Armstrong: Co-founder and current Chief Executive Officer. He has led the company since its inception in 2012, driving its vision to create an open financial system.
Fred Ehrsam: Co-founder and Director. He played a pivotal role in the early technical and strategic development of the platform.

Shareholding Pattern

Coinbase operates with a dual-class share structure comprising Class A and Class B common stock.

Class A Common Stock: One vote per share. Publicly traded.
- Shares Outstanding (Feb 2025): 210,155,374
Class B Common Stock: Twenty votes per share. Held primarily by founders and early investors, ensuring concentrated voting control.
- Shares Outstanding (Feb 2025): 43,724,093

Holders:

Brian Armstrong: holds a significant portion of Class B shares, granting him substantial voting power.
Institutional Investors: Hold the majority of Class A shares (exact breakdown not tabled in summary but referenced in risk factors regarding volatility).

Parent

Coinbase Global, Inc. is the ultimate parent company. It has no parent company of its own. It serves as the holding company for all operating subsidiaries including Coinbase, Inc. and Coinbase Custody Trust Company, LLC.

Investments and Capital Expenditure Plans

Strategic Investments

Coinbase invests in companies and technologies to advance the cryptoeconomy.

Strategic Equity Investments: Valued at $374.2 million as of Dec 31, 2024. These are investments in privately held companies without readily determinable fair values.
Ventures Portfolio: Includes investments in various crypto-native startups and protocols to foster ecosystem growth.

Capital Expenditures

Software and Equipment: Net book value of $200.1 million.
R&D Spending: The company invests heavily in Technology and Development, spending $1,468.3 million in 2024 to enhance platform reliability, security, and feature sets.

Future Strategy

Coinbase’s strategy focuses on three core pillars:

Crypto as an Asset Class: Maintaining the breadth and depth of assets offered for trading and custody.
Crypto as a Financial System: expanding products like stablecoins (USDC) and DeFi interfaces (Wallet) to enable payments and financial services.
Crypto as an App Platform: fostering the development of decentralized applications through the Base L2 protocol.

Expansion Initiatives:

International Growth: Deepening presence in key regulated markets like the EU, UK, Singapore, and Brazil.
Derivatives: Expanding the derivatives offering to U.S. and international customers to capture a larger share of global crypto trading volume.
Onchain Utility: Driving utility beyond trading by integrating payments, identity, and social features into the Coinbase Wallet and Base ecosystem.

Key Strengths

Trusted Brand: Established reputation for security and compliance, a critical differentiator in an industry plagued by hacks and fraud.
Regulatory Compliance: Proactive engagement with regulators and attainment of licenses in major jurisdictions (US, Germany, Singapore).
Scale and Liquidity: Deep liquidity pools attract both retail and institutional traders.
Financial Health: Strong balance sheet with $8.5 billion in cash and cash equivalents, allowing for resilience during market downturns.
Integrated Ecosystem: A comprehensive suite of products (Exchange, Wallet, Custody, Base) that reinforces user retention.

Key Challenges and Risks

Regulatory Uncertainty: The crypto landscape is subject to evolving and often unclear regulations. The company faces ongoing litigation (e.g., June 2023 SEC Complaint) and regulatory scrutiny that could impact business operations.
Market Volatility: A significant portion of revenue (Transaction Revenue) is directly tied to crypto asset prices and trading volumes, which are highly volatile.
Cybersecurity Threats: As a custodian of billions in assets, Coinbase is a prime target for cyberattacks. A successful breach could cause irreparable reputational and financial damage.
Competition: Intense competition from both decentralized exchanges (DEXs) and other centralized platforms with different regulatory standards.
Concentration Risk: A meaningful portion of revenue is derived from Bitcoin and Ethereum trading and USDC stablecoin revenue.

Conclusion and Strategic Outlook

Coinbase Global, Inc. stands as a pillar of the digital asset economy, distinguishing itself through a steadfast commitment to compliance, security, and usability. The company’s financial performance in 2024 highlights its ability to capitalize on market upswings while its “subscription and services” segment provides a growing buffer against volatility.

Looking ahead, Coinbase is strategically positioned to lead the transition of crypto from a speculative asset class to a foundational component of the global financial system. By expanding its international footprint, deepening its derivatives capabilities, and fostering the “onchain” economy through Base and USDC, Coinbase aims to onboard the next billion users into the cryptoeconomy.

Official Site: https://www.coinbase.com/

FAQ Section

1. What was Coinbase’s total net revenue in 2024? Coinbase reported a total net revenue of $6.3 billion for the fiscal year ended December 31, 2024.

2. How does Coinbase generate its revenue? Coinbase generates revenue primarily through two segments: Transaction Products (trading fees from consumers and institutions) and Subscription and Services Products (stablecoin revenue, blockchain rewards, custodial fees, and interest income).

3. What is Coinbase’s policy regarding a physical headquarters? Coinbase is a remote-first company and does not maintain a physical headquarters. It operates globally with a distributed workforce.

4. What is the role of the Base protocol in Coinbase’s business? Base is an Ethereum Layer 2 (L2) blockchain incubated by Coinbase. It generates transaction revenue through sequencer fees and aims to support developers in building decentralized applications.

5. Who are the primary regulators for Coinbase? Coinbase is regulated by various bodies globally, including FinCEN (US), NYDFS (New York), BaFin (Germany), and the Monetary Authority of Singapore, among others.

Content is based on publicly available corporate filings, regulatory disclosures, annual reports, 10-K filings, Investor Relations materials, and direct mail communication with the company.