Coinbase reported a $557 million net loss.
In the fourth quarter, the company reported 8.3 million monthly transactional users.
Cryptocurrency exchange Coinbase outpaced revenue forecasts for the fourth quarter of 2022. Its transaction volume continued to drop. A year after Coinbase made $840 million in net profits during the height of cryptocurrency growth. And the company reported a $557 million net loss.
As per reports, for the fourth quarter, the company reported having 8.3 million monthly transacting users (MTUs). It decline from the 8.5 million recorded in the prior quarter. 8.22 million was what analysts expected. Quarterly, trading volume decreased by 9% to $145 billion.
Our Q4 and FY’22 financial results are in.
Our letter to shareholders can be found on the Investor Relations website at https://t.co/8ovHEtPRgf
— Coinbase (@coinbase) February 21, 2023
Transaction Revenue Fell 12%
While transaction volumes decreased by 12% from the past quarter, Coinbase credited its 5% quarterly increase in income to a 34% increase in subscription and service revenues. The company forecasted $300 million to $325 million in subscription and services revenue for Q1 2023, as well as $150 million or so in restructuring costs.
Currently, the U.S. Securities and Exchange Commission is investigating the exchange’s staking products. The SEC and cryptocurrency exchange Kraken recently agreed with allegations that the site offered unregistered securities, and as part of that agreement, Kraken just discontinued its staking services. And also after reducing its workforce by 18% in 2022, Coinbase reduced 20% of its staff last month.
Additionally, the cryptocurrency exchange platform revealed on Monday that an unknown threat actor had attempted to access the company’s servers remotely by stealing one of its employees’ login information. The firm added that user funds and data were unharmed, however, the attacker managed to gain certain contact information belonging to several Coinbase workers as a result of the incident.