Coinbase Posts Revenue for Q4 2022, Earnings Beat Forecast Expectations


The largest cryptocurrency exchange in the United States, Coinbase Inc., has updated investors on its revenue in the fourth quarter of 2022, Bloomberg reported Tuesday night. 

The exchange’s revenue was 5% up from the third quarter, closing at $629 million. The revenue exceeded the analyst’s forecast of $581. Coinbase also posted a $557 million revenue loss in the fourth quarter, bringing its loss per share for the quarter to $2.46. The share per loss for the quarter beats the forecasted figure of $2.52.

Coinbase Records Declining Trading Volume

The trading volume in Coinbase was among the declines in the fourth quarter amidst the bear market. Its trading volume plummeted by 12% quarter-to-quarter to $322 million. 

The plunge was associated with the bear market and the uproar in the crypto industry following the FTX collapse. The unrest also saw many crypto firms struggle as their ties with the collapsed crypto empire returned to haunt them.

Coinbase Gears Up for “Regulatory Focused” 2023

Coinbase is poised to thrive despite the year starting with a heavy regulatory crackdown on cryptocurrencies.

In a letter to investors, the firm stated, “We expect 2023 to be a year of regulatory focus, and we believe our strong foundation will make us a net beneficiary of this environment.”

The U.S. Securities and Exchange Commission (SEC) has already mounted pressure on crypto firms this year. Kraken, Nexo, and Coinbase have all felt the regulator’s wrath as it doubled its effort after the ugly events in the crypto space last year.

The Year Is off to a Flying Start for Coinbase

2023 has already shown encouraging signs for the troubled crypto exchange. The shares of Coinbase are already 78% up this year and are trading at over $62. It is, however, down by 67% from 12 months ago.

Coinbase has already generated $120 million from transaction revenues in January, following the rise in Bitcoin price. Following the market spike, the exchange expects between $300 and $325 million in subscription and services revenue in the first quarter of this year.

The exchange, however, is cautious about the outcome of the SEC’s crackdown on cryptocurrencies. It has cautioned investors to lower their expectations in the coming months as markets can turn quickly.

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