Still in the red in Q1 2023, Coinbase recorded a much smaller loss than expected. It is a “good quarter,” according to the San Francisco-based crypto-exchange.
On Thursday evening, the US cryptocurrency exchange published its financial results for the first quarter of 2023. Coinbase, now facing stricter regulations in the United States, reports revenue of $736 million in Q1 2023 for a loss of $79 million.
This quarter has represented a turning point in our drive to build a more efficient and financially disciplined business, A company that can do more for less. In Q1, net income increased by 22% T/T, and total operating expenses decreased by 24% T/T, resulting in a net loss of $79 million. Still, a return to a positive adjusted EBITDA of $284 million,” Coinbase wrote in its letter to shareholders, adding that overall it was a “good quarter.”
In comparison, Coinbase lost $557 million in Q4 2022. It is an almost profitable first quarter for the crypto pioneer after a very complicated 2022.
During the last earnings call, Coinbase’s CEO said the firm expected 2023 to be a “regulatory” year. “We believe that our strong foundation will benefit us from this new environment,” explained Brian Armstrong.
Since then, the California crypto-exchange has received a warning (well notice) from the SEC. The policeman of the American stock exchange, which has sued several sector giants this year, was, in turn, sued by Coinbase at least in April.
Despite our continued engagement with the SEC, they have yet to share their specific concerns with Coinbase or provide clarity or a possible path for the industry. While we hope to avoid litigation, we are fully prepared to defend ourselves and the entire industry if necessary,” the company told shareholders on Thursday.
Earlier this month, Coinbase announced the opening an offshore crypto derivatives platform. Based in Bermuda, it is dedicated to institutional investors outside the United States. According to some analysts, this new exchange could represent a revenue opportunity of $30 million to $200 million per year for the company.
Coinbase could leave the US amid a need for regulatory clarity.
The price of the COIN stock, which moves more or less in tandem with the price of Bitcoin and which collapsed in 2022, has risen by nearly 50% this year in the wake of the rebound of the first cryptocurrency on the market. Falling in recent weeks, the share price rose about 8% yesterday in after-market trading.