The Coinbase boss has “never been more bullish” even after a $ 430 million loss in the first quarter

Cryptocurrency exchange Coinbase has revealed its first net loss as a $ 430 million public company in Q1, but CEO Brian Armstrong said in an earnings interview that he “has never been more optimistic about where we are as a company.”

In its first quarter report for 2022, Coinbase revealed that revenue had fallen 27% to $ 1.17 billion, down from $ 1.6 billion in the first quarter of 2021 and some distance away from fourth quarter 2021 revenue of $ 2.5 billion. Users with monthly transactions also fell by more than 19% to 9.2 million, from the previous quarter’s 11.4 million.

Shares in Coinbase had already fallen by more than 1[ads1]6% to close at $ 73 during the day, and after the hourly earnings revelation saw the price fall further to $ 61 at the time of writing. Coinbase’s shares have been on a steady decline since November 2021, reaching almost $ 380 from their first IPO in April last year.

Despite the numbers, Armstrong explained why he remained optimistic in an income interview:

“There are so many customers knocking on our door that we have to have all hands on deck just to keep everything going, so downturns are often sometimes a kind of welcome change from that in the sense that we get to focus on building it. the next layer of innovation that will benefit us in the next cycle. ”

Armstrong said the company was “greedy when others are scared”, acquiring talent and focusing on projects and infrastructure for the future. Addressing what he called the “elephant in the room” of the decline in the company’s earnings, he said:

“The broader markets are down. We see a declining market for growth technology stocks and risk assets, Coinbase and crypto are no exception. The good news is that we as a crypto company have lived through many different cycles in crypto, including major downsides, which I think do us well suited to operate through these environments. ”

He reminded shareholders of a prospectus issued by the company a year ago which said that it aimed to increase crypto adoption in the long term, and run the company on a rough break-even.

In its shareholder letter, Coinbase mentioned its recent launch of non-fungible tokens (NFT) as an area it focused more on in an effort to become a market leader in the area and its ambition to develop its platform as an “on-ramp for the crypto economy”.

Related: The Coinbase manager responds to insider trading allegations with changes to token entries

Armstrong stated that 54% of the platform’s active users do something other than crypto trading, but did not clarify what activities and did not mention the new NFT marketplace in its opening statement.

Asked specifically if the company is satisfied with the activity in the NFT market, Armstrong said that they do not share “measurements on any of our new initiatives”, adding that “there is a lot to build and the opportunity in the NFT area is enormous.”

On the first day of the public market opening, only $ 75,000 in transaction volume took place across 150 transactions, according to chain estimates, a small percentage of the more than 8 million email addresses on the waiting list.

At the end of his opening speech, Armstrong said that the industry was in its early days, and Coinbase sees the opportunities ahead, adding that “whether the market is up or down, we will continue to build.”

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