🔥 Land A High Paying Web3 Job In 90 Days LEARN MORE

Coinbase’s dramatic comeback: Q1 losses shrink as exchange turns the tide

299981
Coinbase has officially halted its plans to acquire FTX Europe, a move initially aimed at expanding into the European derivatives market. The decision comes amid a competitive environment, with other companies like Crypto.com also showing interest in FTX Europe, and as Coinbase faces a decline in its fee revenue. While the FTX Europe deal is off the table, Coinbase remains open to other strategic acquisitions and partnerships, even as it navigates regulatory challenges.Coinbase has officially halted its plans to acquire FTX Europe, a move initially aimed at expanding into the European derivatives market. The decision comes amid a competitive environment, with other companies like Crypto.com also showing interest in FTX Europe, and as Coinbase faces a decline in its fee revenue. While the FTX Europe deal is off the table, Coinbase remains open to other strategic acquisitions and partnerships, even as it navigates regulatory challenges.

In this post:

  • Coinbase revealed a net loss of $79 million in Q1, marking its fifth consecutive quarter of negative net income.
  • The figure is a significant improvement compared to 2022’s losses.

Coinbase revealed a net loss of $79 million in Q1, marking its fifth consecutive quarter of negative net income. However, this figure is a significant improvement compared to 2022’s losses. The leading crypto exchange saw net revenues grow by 22% and total operating expenses decrease by 24% within Q1 2023.

Coinbase described Q1 as a “turning point” in its journey toward becoming a more efficient and financially disciplined company, according to a shareholder letter.

Despite flat trading volumes of $145 billion in Q1 2023, they were significantly lower than the $309 billion recorded in Q1 2022. Coinbase’s stock closed at $49.22, a 1.5% increase for the day, with shares experiencing a 3% increase in after-hours trading.

Regulatory challenges and future outlook

Coinbase faces ongoing regulatory uncertainty, as the SEC issued a Wells notice to the company in March for alleged securities violations. Nevertheless, Coinbase plans to “vigorously defend” itself and sees the situation as an opportunity to push for clearer crypto regulations in the US.

Coinbase’s Q1 results follow a Citigroup analyst’s downgrade of the company’s stock earlier this week. However, some industry experts believe Coinbase’s stance against the SEC could benefit both the exchange and the broader industry in the long run.

Oppenheimer Co.’s executive director, Owen Lau, suggested that Coinbase’s stock price could rise if the company’s adjusted EBITDA were to turn positive. In Q1, adjusted EBITDA reached $284 million, a positive reversal from the $371 million loss in 2022.

See also  Google reveals new quantum chip, can it crack crypto encryption?

Coinbase remains optimistic, stating in its shareholder letter that it aims to improve its full-year 2023 adjusted EBITDA compared to 2022.

A Step-By-Step System To Launching Your Web3 Career and Landing High-Paying Crypto Jobs in 90 Days.

Share link:

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Editor's choice

Loading Editor's Choice articles...
Cryptopolitan
Subscribe to CryptoPolitan