Still in the red at T1 2023, Coinbase nevertheless recorded a loss many weaker than expected. This is a ” good quarter “according to the crypto exchange based in San Francisco.
On Thursday evening, the U.S. cryptocurrency exchange platform released its results Financial results for the first quarter 2023. Coinbase, which is now facing tougher regulations in the United States, announces a revenue of $736 million in Q1 2023 for a loss of $79 million.
This quarter represented a turning point in our drive to build a more efficient and financially disciplined company; one that is able to do more for less. In Q1, net revenue increased 22% Q/Q and total operating expenses decreased 24% Q/Q, resulting in a net loss of $79 million, but a return to positive adjusted EBITDA of $284 million,” Coinbase wrote in its letter to shareholders, noting that overall it was a “good quarter “.
In comparison, Coinbase had reported a loss of $557 million in Q4 2022. This is a first quarter almost profitable For the crypto pioneer after a very complicated 2022.
On the latest earnings call, Coinbase’s CEO said the firm expects 2023 a year “focused on regulation “. “We believe that our strong foundation will benefit us in this new environment “explained Brian Armstrong.
Since then, the Californian crypto exchange has received a warning (wells notice) from the SEC. The American stock market watchdog, which has sued several giants of the sector this year, was, in turn, sued by Coinbase at least in April.
Despite our continued engagement with the SEC, they have not shared their specific concerns with Coinbase or provided clarity or a workable path forward for the industry. While we hope to avoid litigation, we are fully prepared to defend ourselves and the industry as a whole if necessary,” the company told shareholders Thursday.
Earlier this month, Coinbase has announced the opening of an offshore crypto derivatives platform. Based in BermudaIt is dedicated to institutional investors outside the United States. According to some analysts, this new exchange could represent a revenue opportunity of 30 to 200 million dollars per year for the company.
The price of the stock COIN, which moves more or less in tandem with the price of Bitcoin and had collapsed in 2022, has risen nearly 50% this year in the wake of the market’s leading cryptocurrency rebound. Down in recent weeks, the share price rose about 8% yesterday in after-market trading.
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