important point
- Coinbase reported higher than expected earnings yesterday.
- The company posted revenue of $604 million in the final quarter of 2022, up from $590 million in the third quarter.
- Part of Coinbase’s performance is due to increased interest income.
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In its latest earnings report, Coinbase claimed to have proven to be “significantly resilient despite major shocks to the system.”
highly resilient
Coinbase is off to a strong start this year.
Major US based crypto exchange report Revenue for the fourth quarter of 2022 was $604 million, beating estimates of $589 million. That’s his 5% increase from his $590 million the company earned in the third quarter of this year.
Coinbase’s performance was driven by higher interest income, which increased to $186 million from $101 million in the previous quarter. Of the $186 million, $146 million came from the company’s USDC interest income. Coinbase CEO Brian Armstrong previously stated his ambition to move the exchange away from relying primarily on transaction fees as a source of revenue to reduce the company’s reliance on favorable market conditions. had expressed.
“Coinbase and Crypto have proven significantly more resilient in 2022 despite major shocks to the system,” the report states. Crypto market capitalization has fallen 64% year-on-year and volatility has reached multi-year lows, but the company claims that the long-term fundamentals of Coinbase and the cryptocurrency sector remain strong. increase.
The report also refers to the US regulatory situation, which it describes as “disjointed.” His FTX bankruptcy in November has been cited as a major catalyst for the increased attention crypto companies are receiving from regulators, especially the SEC. According to the report, Coinbase is finally positioned to benefit from a clearer regulatory framework, which could eventually come in the form of Congress passing federal cryptography laws. “Policy is my number one priority this year,” Armstrong said on the earnings call.
As far as the 2023 outlook is concerned, Coinbase says it is “ready to manage.” [its] Expand business through a wide range of trading revenue scenarios in 2023, including potential increases, decreases or stabilization of crypto-asset market capitalization and crypto-asset volatility compared to end-2022 levels. ”
Disclaimer: At the time of writing, the author of this article owned BTC, ETH, and several other crypto assets.