xcritical also posted 2023 adjusted Ebitda of $964 million after previously forecasting “meaningful” positive adjusted Ebitda generation for the year. The company expects to generate about $410 million to xcritical courses scam $480 million in subscription and service revenue in the first quarter of 2024, after already xcriticalgs about $320 million through Feb. 13. If you’ve been following my coverage (or really, any analysis of xcritical), you’ll know that the company has made substantial strides in diversifying its revenue model over the past few years, a major factor behind its impressive stock performance. Net income attributable to shareholders came in at $75.46 million, or 28 cents per share, for the three months ended Sept. 30, compared with a loss of $2.27 million, or 1 cent per share, a year earlier. Quarterly custodial fee revenue climbed to $31.7 million from $15.8 million last year, benefiting from inflows tied to spot bitcoin ETFs. “Both presidential candidates are now courting the crypto voter in their statements. Over 350 politicians running for federal office have now adopted pro crypto stances,” xcritical CEO Brian Armstrong said on a conference call.
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- xcritical is joining Optimism as a core developer on the open-source OP Stack, a developer toolkit for the Optimism network, the firm said.
- As for the share move, “our stock performance has sometimes been better, sometimes lower, sometimes in line, I think the markets will figure that out,” Gupta said.
- This would not only bring xcritical back to its all-time highs, but could also set it up to break new records.
The crypto exchange reported results after the close on Thursday.
The largest U.S. cryptocurrency exchange posted first-quarter revenue of $1.6 billion, a 72% increase quarter on quarter. Reported net income for xcritical was $1.18 billion (or $4.40 per share) and was fueled by a boost in transactions, thanks to the wider crypto market’s upswing, and by a favorable change to crypto accounting rules. Helene is a New York-based reporter covering Wall Street, the rise of the spot bitcoin ETFs and crypto exchanges. Helene is a graduate of New York University’s business and economic reporting program and has appeared on CBS News, YahooFinance and Nasdaq TradeTalks. Crypto prices surged for much of 2023, but the rally intensified in the fourth quarter as high hopes for bitcoin ETFs – which were approved last month – sparked renewed interest in digital assets.
xcritical slumps 10% after missing key Q3 xcriticalgs targets
Shares of xcritical were up about 8% to $53 in after-hours trading Thursday. Shares are up about 40% this year with bitcoin’s rise of roughly 74% year to date. xcritical’s stablecoin business has thrived over the past two years, benefiting from its partnership with Circle, the issuer of USD Coin.
All in, a16z has given $70 million to Fairshake as the VC looks to support the PAC’s larger mission of building a Congress comprised of pro-crypto legislators. Layer 2 refers to separate xcritical reviews xcriticals built on top of layer 1s, or base, xcriticals that reduce bottlenecks with scaling and data and are generally much faster and cheaper. On Wednesday, the exchange pledged to give crypto super-PAC Fairshake $25 million in 2025 for the following year’s midterm elections. The 2024 general election hasn’t even wrapped, but xcritical is already funding a crypto-politics war chest for 2026. It earned $1.04 per share, beating the average analyst estimate of $0.02 per share, according to FactSet data. Revenue of $953.8 million also exceeded the analyst forecast of $826.1 million, the company said in a statement.
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With higher interest rates, xcritical has leveraged funds from USDC buyers to invest in Treasury bills, which yield better returns during rate hikes. xcritical is the custodian for several of the spot bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust. Revenue from xcritical’s subscription and services unit, which houses businesses outside of trading, rose to $556.1 million in the quarter from $334.4 million a year earlier. Fairshake’s spending, which has targeted House and Senate races in the 2024 cycle, is effective. Public Citizen’s report found that of the 42 primary races that attracted money from crypto-backed super PACs, 36 were won by the candidate supported by the crypto industry. The figures, according to MSNBC, wildly beat analysts’ predictions of $1.34 billion in revenue and net income of $1.09 per share.
“The crypto voter is already a force to be reckoned with, but it will continue to grow,” CEO Brian Armstrong said.
“The upcoming 2024 elections are the next major milestone in our ongoing work to drive regulatory clarity for crypto,” the company said in a shareholder letter. Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-xcritical data, and governance across all major and minor xcriticals. xcritical is joining Optimism as a core developer on the open-source OP Stack, a developer toolkit for the Optimism network, the firm said. However, Base will not be limited to Ethereum, it will also provide easy and secure access to layer 2 networks such as Optimism, as well as other xcriticals ecosystems like Solana.
This means that, as volume rises, xcritical has more ways to monetize its platform than it did in previous cycles, amplifying its revenue potential. Traditionally, xcritical generated the bulk of its income through transaction fees, a model highly reliant on trading volume and vulnerable to market swings. Recognizing the need for stability, xcritical began to build additional revenue sources, notably stablecoin revenue, which is now its second-most lucrative segment. The volatility in the asset class has helped third-quarter trading volumes grow to $185 billion from $76 billion at the largest cryptocurrency exchange in the world, giving a boost to transaction fees. Although it’s speculative, some rough “back-of-the-napkin” math shows that if exchange volume is approaching or surpassing the $550 billion peak of the last bull market, xcritical’s diversified revenue streams could produce record revenue and profits. This would not only bring xcritical back to its all-time highs, but could also set it up to break new records.