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As the crypto market slumps further, Coinbase shares are down to almost their all-time lows of about $65.
Coinbase Global Inc (NASDAQ: COIN) has become the first crypto company to enter the Fortune 500. The firm is currently listed as one of the Fortune 500 companies for 2022. Notably, The Fortune 500 is a compiled list of the top 500 largest corporations in the US by total revenue of their respective fiscal years. Fortune magazine systematically gathers and publishes the top companies annually. And for the first time in history, a crypto company is on the list.
Coinbase Ranks 437th in 2022 Fortune 500
According to Fortune 500 for 2022, Coinbase is ranked the 437th largest US corporation by total revenue. This came amid the general crypto crash that affected many crypto companies. Coinbase is also struggling to survive during the current bearish market conditions. The crypto company made it to the list because Fortune ranked the listed companies based on 2021 revenues.
Under the leadership of CEO Brian Armstrong, Coinbase’s revenue for the 2021 fiscal year was a little over $7.8 billion. The revenue signified a 513.7% surge over the previous year. Additionally, the crypto company’s profit for the 2021 fiscal year advanced 1024.4% YoY.
As 2021 was good for Coinbase, 2022 has been quite the opposite. The crypto company announced net revenue of $1.16 billion for Q1, a significant fall from the $2.49 billion recorded in the fourth quarter of the last year. Also, the company accounted for a net loss of $430 million for Q1.
As the crypto market slumps further, Coinbase shares are down to almost their all-time lows of about $65. The shares dropped drastically by 88% from their debut price to around $40 earlier in the month. At press time, COIN stock is at a premarket trading price of $65.15, a 1.44% loss over its previous close of $66.10.
Mizuho Securities Lowers Coinbase’s 2020 Revenue Estimate amid Market Crash
The declines occurring in the crypto space have made Mizuho Securities lower its estimate for Coinbase’s 2022 revenue. Formerly $6.7 billion, the retail banking company placed Coinbase’s full-year 2022 revenue at $5.6 billion. The crypto company also said it would be taking its slow pace with hiring employees at this troubling time. Emilie Choi, Coinbase’s President and Chief Operating Officer commented:
“Heading into this year, we planned to triple the size of the company. Given current market conditions, we feel it’s prudent to slow hiring and reassess our headcount needs against our highest-priority business goals.”
According to the official announcement, Fortune said the revenue threshold for the 2022 Fortune 500 compilation was $6.4 billion. All the companies on the list account for two-thirds of the total GDP of the US, with $16.1 trillion. These companies also provide jobs for 29.7 million people across the globe. Interestingly, 44 corporations on the list operate under the leadership of women CEOs. This is a first of its kind, making it a record high.