In a shareholder letter posted on the 21st of February 2023, it was illustrated how Coinbase ended 2022 with over $5.9 billion in USD resources and Crypto assets.
The year-end shareholder letter comprising 6 chapters was coined to provide an overview of Coinbase 2022 results and how the company was managed through a tumultuous year.
Coinbase stated that their Q4 results were consistent with their outlook especially In the latter half of 2022, as they pivoted and began reducing expenses. In addition to focusing on financial performance, they also increased engagement with global policymakers and regulators and took significant steps in building industry-leading partnerships to serve as important building blocks for the future.
Despite the drama from FTX and LUNA’s downfall that caused a dent in the crypto economy, growth and advancement of both the industry and Coinbase was still witnessed average Bitcoin prices in Jan 2023 were still up by above 80% compared to the average price in 2020.
Monthly active developers in crypto more than doubled since 2020 to over 20,000. There is notable Progress in the EU’s Markets in Crypto Assets (MiCA) framework, recent laws in Brazil, plans to regulate crypto in the UK, and other proposals in jurisdictions like Australia, Japan, Switzerland, and Hong Kong.
Coinbase has stood apart from the competition and continues to be recognized as a trusted platform as Trading volume grew to $830 billion in 2022 from $193 billion in 2020. Added to that, Subscription and services revenues grew over 17x to nearly $800 million in 2022 from less than $50 million in 2020.
Roughly 25% of the top 100 largest hedge funds in the world by reported AUM have chosen to onboard with Coinbase, up from a handful at the end of 2020, and industry-leading partnerships, including with Blackrock, were announced in Q4 and Full-Year 2022.
Q4 net revenue was recorded to be $605 million, which is up 5% Q/Q, of which $322 million was transaction revenue and $283 million was subscription and services revenue.
On a full-year basis, net revenue of $3.1 billion was generated in 2022, down from $7.4 billion in 2021, of which $2.4 billion was transaction revenue and $793 million was subscription and services revenue.
Coinbase acknowledges that even though the journey ahead will have its challenges, their grit, determination, and resolve have been strong for 10+ years and they are very excited to remain a leading institution in the crypto industry.
