U.S. financial technology company SoFi has released its cryptocurrency figures for the first quarter of 2024. According to the company’s report, SoFi generated nearly $121.6 million in total crypto revenue during this period. However, these revenues were almost completely offset by $120.7 million in transaction-related costs. As a result, SoFi’s net profit from crypto transactions amounted to just $852,000.
Crypto trading and user numbers
SoFi introduced in-app crypto trading in November of last year. With the most recent financial disclosures, the company has, for the first time, provided public data regarding its crypto operations. As of March 31, SoFi had opened 239,509 crypto accounts, a figure that reflects total account openings and does not specifically represent active traders.
In its statement, SoFi clarified that it records all crypto transactions on a gross basis, acting as the principal party in each trade. This means SoFi buys and sells cryptocurrencies directly from third-party liquidity providers before settling transactions with its clients. This model positions SoFi as an intermediary in crypto trades, indicating that the company does not assume directional market risk.
Financial performance and latest initiatives
According to its financial statements, SoFi reported net income per share of $0.12, or $0.13 on an adjusted basis. This marked a notable increase compared to the same period last year, when earnings per share stood at $0.06 in the first quarter of 2023.
SoFi emphasized that nearly all transaction revenues are offset by transaction costs, so even with high trading activity, the company records only a small amount of net crypto income.
SoFi’s new projects and regulatory outlook
In June, SoFi announced plans to re-enter the sector with fresh investments in crypto and blockchain-based money transfers, while also highlighting the evolving regulatory environment. Of particular note, if the GENIUS Act—currently under consideration in the U.S.—comes into effect, SoFi’s recently launched stablecoin, SoFiUSD, will need to be transitioned into a separately licensed and regulated entity. SoFiUSD, introduced in December 2023, is the company’s own stable cryptocurrency designed for corporate payments.
SoFiUSD began issuance in the first quarter and will be used for card network payments through a new partnership with Mastercard. This development aims to bridge traditional finance with the crypto and blockchain ecosystem, providing a seamless integration for users.
The company stated that its holdings of crypto assets are minimal, held solely to facilitate operational transactions and not for long-term investment purposes.
SoFi is a next-generation technology firm specializing in digital banking and financial services in the U.S. The company provides a wide array of financial products through a single platform, ranging from cryptocurrencies to loans, investments, and payments.
