- Coinbase is the largest crypto exchange in the United States. Recently, the company made its earnings report public, and the results are shocking.
- Despite the predictions and expectations set by experts, Coinbase beat all of them. The crypto exchange suffered losses, according to their report. In fact, $664 million in net losses entered their balance sheet.
Coinbase is the biggest publicly traded crypto exchange in the United States of America. On that note, crypto enthusiasts constantly monitor their financial data to know their profitability status. However, their earnings call for the Q2 of 2023 shows a massive growth in their revenue. Even the losses are below the expectations of experts.
Coinbase Earnings Report: A Deep Dive Into the Details
- Many details in Coinbase’s earnings report show how much the crypto exchange strives to keep afloat. This is irrespective of the legal battles between them and the Securities and Exchange Commission. First, the earnings call shows Coinbase made a total revenue of $708 million. This is down by 8% in the quarter-to-quarter comparison. Nevertheless, it is still more than the expectations of many analysts.
- Furthermore, Coinbase made a total of $335 million from its subscriptions and services. Also, Coinbase reports a reduction in its expenses. $664 million is their quarterly recurring expenses, and it is down by 1%. Nevertheless, Coinbase made $194 million in their Adjusted EBITDA. Moving on to the value of resources on the crypto exchange, Coinbase said they are approximately $5.5 billion. Then for the value of assets on the platform, it stands at a whopping $128 billion. These numbers are enormous for Coinbase, and many expect them to continue on this path.
- Coinbase revenue generation won’t go under the radar. In fact, it did exceptionally well, even more than expert’s expectations. Coinbase said its net revenue is $663 million. Going into detail, the primary reason behind their revenue increase is the Blackrock deal. When the SEC approves Blackrock Bitcoin spot ETF, Coinbase will be the parent exchange.
Coinbase Disappointed with the SEC
In their earnings report, legal issues with the Securities and Exchange Commission popped up. Apparently, Coinbase is not happy with how the SEC battles with every crypto firm. Nevertheless, the crypto exchange wants to abide by all the rules and regulations. All they ask from the Securities and Exchange Commission is to provide clarity in their regulations.
“Still, despite our good faith efforts and transparency of our business to the SEC for years now, we were deeply disappointed that the SEC brought an unwarranted enforcement against us in June, and that ten states initiated proceedings about our staking services,” part of the report said.
Conclusion
Coinbase released its earnings report on the 3rd of August, 2023, and it contains a lot of good news. Apparently, the platform’s net revenue stands at an incredible $663 million. On the other hand, the net operational expenses stand at $664 million. But overall, Coinbase impressed a lot of people.
