The financial report for the fourth quarter of 2022 showed that the revenue of the largest US cryptocurrency exchange Coinbase reached $604.9 million, surpassing the forecast of $589 million.
Even so, the exchange’s revenue for the whole year 2022 was still down 57% compared to 2021, dropping from $7.3 billion to $3.1 billion.
Coinbase’s report also showed that the exchange’s after-tax profit reached negative $124 million in the fourth quarter, as expected. In 2022, Coinbase saw a loss of $371 million, down from $4 billion in profits in 2021.
The on-chain staking yield is also notable, recorded at $62.4 million, slightly below the estimate of $63 million. In addition, Coinbase’s total staking revenue increased to $275.5 million from $223 million in 2021.
In terms of operating expenses, Coinbase said expenses last quarter were $1.2 billion, up 3% from the previous quarter. In 2022, Coinbase’s total costs were $4.5 billion, up from $3.7 billion in 2021, citing more hiring than necessary. The exchange had to conduct a large-scale layoff between 2022 and early 2023 to optimize 30% of the budget for the first quarter of 2023.
In addition, the report revealed that the US-based exchange holds $4.425 billion in cash and assets equivalent to cash.
Despite a turbulent year, Coinbase said it remains optimistic about the market’s resilience. The US exchange also said that it is preparing a series of development plans in 2023.
Coinbase shares fell 4.8% in trading on Feb. 21 because of poor financial results, according to TradingView.
