Here's Why Coinbase's Q1 Results Might Positively Surprise Investors
Popular cryptocurrency brokerage and exchange Coinbase Global (NASDAQ: COIN) generates the bulk (93% in 2021) of its revenue from transaction fees. And because the market for digital assets is notoriously volatile, so too are the company's financial results in any given period since they are largely dependent on trading volume.
That's why when management released Coinbase's first-quarter outlook at the end of February, it was influenced by the fact that the cryptocurrency market was down about 27% to start the year up until that point. However, through the end of March, the entire market's value rose from roughly $1.6 trillion to $2.1 trillion.
And this reversal trend could foreshadow a positive quarter for Coinbase when it announces Q1 results on May 13.
Source Fool.com
