Robin Hood’s ear Coinbase, too. a sharp rise in last year’s fourth-quarter earnings GameStop Signs Of Investing In Virtual Assets Stock prices rise on Trump’s warm wind
Shares of virtual asset-related companies are on the rise in the New York Stock Exchange. This is due to the improved performance of related companies due to the election of President Donald Trump, who put forward a pro-virtual asset policy.
On the 13th (local time), Coinbase, a U.S. virtual asset exchange, announced earnings that far exceeded market expectations. Coinbase posted fourth-quarter revenue of $2.27 billion, beating market expectations of $1.84 billion. This represents a significant growth compared to the previous quarter’s revenue of $1.26 billion.
The adjusted net profit also far exceeded the market forecast. Adjusted net income for the fourth quarter was $1.3 billion, beating market estimates of $906.9 million.
The surge in trading volume has solidified the performance. Trading volume for the fourth quarter was $439 billion, up 185% year-over-year. At the same time, transaction fee revenue was $1.56 billion, up 194% year-on-year.
“The voice of virtual assets was clearly communicated in the U.S. election, and the era of regulatory enforcement that has shrunk the industry is coming to an end,” Coinbase CEO Brian Armstrong said in a shareholder letter.
“Coinbase has more tokens and stablecoins to trade than Robinhood,” said John Wu, CEO of Ava Labs. “As the U.S. regulations on virtual assets become clear, services will become richer.”
GameStop, a U.S. game retailer, also received market attention for hinting at investment in virtual assets. Ryan Cohen, chairman of GameStop, released a photo taken with Michael Saylor, chairman of Strategy, the world’s largest bitcoin-bearing company.
GameStop is a representative stock that led the “meme stock” craze in 2021, and it is a problematic company that repeatedly soared and plunged under the leadership of social media and individual investors at the time.
Since then, the company has shown interest in blockchain and virtual currency-related businesses, but dropped them early last year, citing regulatory uncertainty. However, as regulations on the virtual currency industry in the U.S. are likely to be eased recently, the possibility of changing the posture is increasing.
GameStop has $4.6 billion in cash, with a total debt of less than $1.5 billion, which is estimated to have enough investment capacity.
Robinhood, a stock and virtual asset trading platform, is also continuing its gains. Robinhood announced on the 13th that it recorded its largest quarterly sales ever, exceeding $1.01 billion in the fourth quarter of last year. It is the virtual asset business that has led to the performance. Robinhood’s virtual asset-related sales reached $358 million in the fourth quarter, up about 700% year-on-year.
“The U.S. pro-(親) virtual asset policy stance will have a positive impact on its business expansion,” said Vlad Tenev, CEO of Robinhood, who appeared on Bloomberg on the 14th (local time).
He also gave an optimistic outlook on the virtual asset market, saying, “The advantages of stablecoins and tokenization technologies over existing financial systems will help Robinhood’s existing business and virtual asset business as a whole.”
Coinbase shares rose 8.45% to $298.11 on the New York Stock Exchange on the 13th, while GameStop closed 1.27% higher at $26.34. Robinhood surged 14.11% to $63.80.
In addition, Bitcoin mining companies Riot Platforms and Marathon Digital Holdings are also showing positive trends across virtual asset-related companies, with their stock prices rising by 9.4% and 4%, respectively.
