Coinbase and Robinhood Report Strong Q4 Growth

Rising trading volumes in the crypto market have led to higher-than-expected revenues and profits at exchanges Coinbase and Robinhood, causing analysts to upgrade their price targets for the two companies’ shares.

Strong Q4 for Coinbase and Robinhood

According to analysts at JPMorgan, the crypto market benefited greatly in the fourth quarter of 2024 from the election of new US President Donald Trump, which created a more optimistic market outlook. Coinbase recorded its strongest quarter in over a year, while Robinhood posted an impressive 700% year-on-year increase in crypto sales.

Coinbase’s Q4 results included total revenue of $2.3 billion (+88% quarter-on-quarter) and net income of $1.3 billion. Retail trading volume climbed to $94 billion, while institutional traders moved an impressive $345 billion.

Analysts raise price targets

Coinbase and Robinhood shares have gained 112% and 365%, respectively, over the past 12 months. In response, analysts have raised their price targets:

JPMorgan : Coinbase at $344 (previously $264)
US Tiger Securities : Coinbase at $300 (previously $265)
JPMorgan : Robinhood at $45 (previously $39)

Robinhood’s crypto revenue rose to $358 million, accounting for 35% of total revenue – the highest share yet. For comparison, crypto typically only contributes 10-20% of quarterly revenue.

Regulations and future prospects

Although regulatory challenges remain, Coinbase sees growing competition as a positive. The company generates revenue not only through trading, but also through staking, stablecoin onramping, and digital asset management.

Meanwhile, Robinhood is further advancing its crypto business with the planned acquisition of crypto exchange Bitstamp. Analysts expect this to further increase token supply and trading volumes.

Another major player, CME Group, also reported record trading volumes for crypto and plans to further expand its offering in 2025.

Conclusion

Coinbase and Robinhood have capitalized on the new market dynamics and strengthened their position in the crypto space. With rising trading volumes, regulatory easing, and strategic expansions, 2025 could be another strong year for these companies.

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(Featured image by PiggyBank via Unsplash)

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