Coinbase loses $430 million in Q1, the outlook for 2022 is basically unchanged

At 4 p.m. ET on Tuesday, Coinbase announced its first-quarter 2022 financial results.

The financial report shows:

Net operating income in the first quarter was US$1.165 billion, down 27.05% from the first quarter of last year and down 53.2% from the fourth quarter of last year.

The average number of monthly transaction users in the first quarter was 9.2 million, a year-on-year increase of 50.82% and a month-on-month decrease of 19.3%.

The net loss in the first quarter was US$430 million, compared with a net profit of US$771 million in the same period last year and a net profit of US$840 million in the fourth quarter of last year.

The total transaction volume in the first quarter was US$309 billion, a year-on-year decrease of 7.76% and a month-on-month decrease of 43.5%.

The platform assets in the first quarter were US$256 billion, a year-on-year increase of 14.8% and a month-on-month decrease of 7.91%.

The earnings report noted that the first quarter of 2022 continued the trend of lower crypto-asset prices and volatility that began at the end of 2021. These market conditions directly impacted Coinbase’s Q1 2022 results. Coinbase believes thatthese market conditions are not permanent and remain focused on the long-term.

In Q1 2022, Coinbase made good progress in product development, highlighted by the April 2022 beta launch of Coinbase NFT, the growing popularity of Coinbase Wallet, the expansion of Coinbase’s staking product with the addition of Cardano, and the hiring of 1,200 Multiple full-time employees build the future of cryptocurrency.

The financial report also disclosed the situation of the crypto assets held by the platform. The total crypto assets held in the first quarter were about 1.3 billion US dollars, and the crypto assets held as investments were about 490 million US dollars.

2q8JiB00lLf4U8xjEmtFjaEM34f3rdjPPSSJnOXm.pngThe assets on the platform are as follows: BTC occupies 42% and ETH occupies 24%.


In recent days, affected by the decline in the crypto market, Coinbase’s stock price has fallen below the $90 and $80 mark in a row, and closed at $72.9 per share on May 10, a record low. Compared with the high level in November last year, it has fallen by nearly 80%, and has fallen by more than 70% since the beginning of this year. Shares of Coinbase plummeted 15% after the bell after announcing its first-quarter earnings report.


Coinbase CFO Alesia Haas said it expects total trading volume and monthly trading users in the second quarter to be lower than in the first quarter, but the outlook for 2022 is “basically unchanged . ” In a letter to investors , the company said it will continue to focus on limiting the potential loss of full-year adjusted EBITDA (earnings before interest, tax, depreciation and amortization) to around $500 million during a prolonged bear market. .

Notably, Alesia Haas revealed that the company chose to make 2022 an investment year. Data shows that Coinbase Ventures made 71 investment transactions in the first quarter of this year, the highest quarter in history. Among them, the category with the highest proportion is Web3 infrastructure (32%), followed by NFT/Metaverse (28%) and DeFi (23%).


Separately, Coinbase revealed that it has filed a listing registration statement with the SEC for a potential prospective offering, which could include the sale of new securities for general corporate purposes. Coinbase said that while there are no immediate plans to sell the securities . Coinbase’s goal has always been to raise capital from shareholders at the lowest possible cost. This listing statement will enable it to issue securities in a shorter time frame, possibly within a few days, allowing it to better time market and take advantage of short-term windows of volatility or favorable market conditions.


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