Leading US-based cryptocurrency exchange, Coinbase has announced that it exceeded revenue expectations for the fourth quarter of 2022. Despite declining transaction volume, the platform remained resilient, with strong long-term fundamentals.
Coinbase’s Q4 net revenue rose 5%, driven by subscription and service diversification, as per the company’s shareholder letter. However, transaction revenues fell by 12% Q/Q, offset by a 34% Q/Q growth in subscription and services revenue.
Company’s Q4 financial position is firm: $5.5B in USD resources and $426M in crypto assets. The company’s exposure to client or counterparty insolvencies was $14 million in 2022, with no loss of customer funds.
As regulation looms, Coinbase believes it is well-positioned to benefit. The company expects policy developments to unlock crypto’s full potential and benefit from it, according to its statement.
It aims to generate Adjusted EBITDA in all market conditions, positioning itself for long-term growth. Looking ahead to Q1 2023, the crypto markets have shown improvement compared to Q4 of the previous year. Cryptocurrencies’ total market cap has risen by 40% year-to-date as of February 17th.
Additionally, crypto asset volatility increased by 5% during this period compared to Q4. The company’s trading operations recorded transaction revenue of $120 million in January 2023, reflecting these market trends.
Coinbase to Add Support for Euro Coin (EUROC)
“EUROC to be available as an ERC-20 token on Ethereum, expanding Coinbase’s product lineup and offering more options to customers.”This move also marks an effort by Coinbase to diversify its assets.
“We advise against transferring EUROC to other networks due to the risk of financial loss, although Coinbase and Coinbase Exchange support inbound transfers of EUROC for trading.”
“Subject to liquidity fulfillment, EUROC will begin trading on February 22, 2023.” Initially, trading will occur in phases on EUROC-USD and EUROC-EUR trading pairs.
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“However, some of the supported jurisdictions may restrict EUROC support.” Initially, Coinbase will support EUROC under the Experimental label, assessing performance and customer feedback before deciding on the complete listing.
Coinbase surpasses revenue targets, adds EUROC support, expands offerings, and improves financials for growth.
This article conveys general information and the opinions expressed should not be considered personal advice for any individual or specific security or investment product.