By
Chimamanda U. Martha
April 19th, 2024
Coinbase’s annual revenue is currently down by almost 60% from last year’s and is estimated to be around $3.2 billion.
Coinbase Global Inc CEO Brian Armstong has confirmed rumors previously circulating about the company’s revenue in the running year of 2022. According to him, Coinbase is currently struggling with its revenue and will most likely make half or less of what it made last year.
In an interview with Bloomberg’s David Rubenstein, Armstrong recalled that the exchange raked in about $7 billion of revenue in 2021. However, he also admitted that things have not been as rosy in 2022. He said partly:
“This year with everything coming down it’s looking, you know, about roughly half that or less.”
Meanwhile, although Armstrong claims that the exchange made $7 billion or thereabout last year, financial data company FactSet begs to differ. The firm claims that Coinbase made $7.8 billion in 2022.
For 2022, however, FactSet has also released its projection of Coinbase’s revenue already. Based on its study, it estimates Coinbase’s annual revenue for the year to be around $3.3 billion. But for the moment, the revenue is said to be around $3.2 billion, an almost 60% decline from 2021 figures.
Coinbase Revenue 2022: A Reflection of a Difficult Crypto Year
Armstrong’s revenue prediction may hardly come as a surprise though. Coinbase, just like several other crypto exchanges, has had a long and difficult year. Particularly with regard to the almost unbelievable amounts of drops in crypto prices, and the unending cases of bankruptcies ravaging the crypto industry. One such is the recent collapse of FTX exchange, a former competitor of Coinbase.
The FTX collapse is still by far, one of the biggest events that rattled the entire crypto industry this year. So much so, that allegations have been flying around about a possible foul play in the events that led up to the collapse. But former FTX CEO Sam Bankman-Fried insists that the crash was merely the product of accounting errors.
Also, Coinbase’s stock has fallen by over 80% in 2022, making it one of the least-performing stocks on Nasdaq. So, it appears that there is no end in sight for the exchange’s troubles. Especially since more investors are staying off crypto-related companies, at least, since the FTX crash.