Coinbase (COIN), the United States’ largest cryptocurrency exchange platform, announced its fourth-quarter earnings and beat analysts’ expectations with its $605 million net revenue and loss of $2.46 per share. In contrast with the prior quarter’s 8.5 million users, the company reported 8.3 million monthly transacting users (MTUs) during Q4.
Analysts expected that Coinbase’s net revenue would be $590 million and a $2.52 per share loss in this fourth-quarter earnings. According to CNBC, the trading volume dropped 9% to $145 billion from the last quarter. The crypto market strengthened in Q1 compared to Q4, resulting in $120 million in transaction revenue generated in Jan 2023, Coinbase said.
Coinbase noticed uneven growth in Ethereum, Solana, and Cardano in its third-quarter earnings. Coinbase had started providing multi-wallet support for Ethereum and Solana earlier. Now Ethereum and Solana can access 15 sub-wallets linked to one recovery wallet. Each sub-wallet will provide a unique address for the transaction.
Brian Armstrong, Coinbase CEO, said that “Policy is my top priority this year.”
“There is a lot of excitement about the potential of this technology, and there is a lot of desire for people to have this built here in America.”
Earlier, the US regulator, the Securities and Exchange Commission (SEC), charged Kraken for breaching the nation’s security laws which slightly impacted Coinbase.
The company anticipated subscription and service earnings of $300 million to $325 million for the first quarter of 2023, including $150 million worth of restructuring charges. Earlier, Coinbase initiated the first crypto layoffs of 2023. On Jan 10, Coinbase announced layoffs of nearly 940 workforces.
Before the announcement of its Q4 earnings, Coinbase’s shares had increased 86% year to date. According to nvestor email Cathie Wood’s ARK Innovation ETF (ARKK) has added 181,972 shares of Coinbase for $11.4 million, surpassing the $9.2 million transaction placed in Feb 2023. At press time, COIN shares are up by 1.10% at $61.86.
The stock market was slightly affected due to the release of FOMC’s meeting minutes from January31 to February 1 on Wednesday. January CPI report showed a tendency in inflation but affected the US stock market earlier. CPI eased to 6.4% from December, slightly higher than the 6.2% consensus estimate. On Wednesday, the Dow Jones Industrial Average And S&P were down by 0.26% and 0.16%, respectively. And the NASDAQ has gained around 0.13% and closed at 11,507.07.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/02/23/coinbase-q4-earnings-report-exceeded-analysts-forecasts/