<p class=”MsoNormal”>Coinbase, an American cryptocurrency exchange, is expecting its revenue for the fiscal year 2022 to be “about roughly half or less” than its revenue in 2021, Brian Armstrong, the firm’s Chief Executive Officer, told Bloomberg on Wednesday. </p><p class=”MsoNormal”>The exchange also tweeted the same information, noting that the projection is in line with the outlook provided on our Q3 earnings call on Nov 3, 2022.</p><blockquote class=”twitter-tweet”><p dir=”ltr” lang=”en”>Our CEO recently sat down with David Rubenstein at Bloomberg. Brian indicated that he expects Coinbase FY2022 revenue to be less than half of FY2021 revenue. This view is consistent with the outlook provided on our Q3 earnings call on Nov 3, 2022.<a href=”https://t.co/iCDO16bFf2″>https://t.co/iCDO16bFf2</a></p>— Coinbase (@coinbase) <a href=”https://twitter.com/coinbase/status/1600562073997434880?ref_src=twsrc%5Etfw”>December 7, 2022</a></blockquote><p class=”MsoNormal”>Crypto Market Turmoil</p><p class=”MsoNormal”>This expectation of a sharp decline in the crypto exchange’s revenue comes on the heels of the collapse of top crypto firms this year and plummeting market prices of digital assets. </p><p class=”MsoNormal”>In early November, <a href=”https://www.financemagnates.com/cryptocurrency/ftx-the-rise-the-fall-and-the-reaction/”>the collapse</a> of the Bahamas-headquartered crypto exchange, FTX, sent shock waves across the crypto industry. The exchange, one-time one of the industry’s largest, is currently undergoing <a href=”https://www.financemagnates.com/cryptocurrency/sam-bankman-fried-finds-attorney-ftx-probes-build-up/” target=”_blank” rel=”follow”>bankruptcy proceedings in the US</a> and facing civil and <a href=”https://www.financemagnates.com/cryptocurrency/the-bahamas-will-not-share-information-on-ftx-probe-attorney-general/”>criminal investigation</a> in the Bahamas.</p><p class=”MsoNormal”>Check out the recent Finance Magnates London Summit 2022 session on the future of cryptocurrencies.</p><p class=”MsoNormal”>In the fall-out of FTX, American crypto lender BlockFi late last month <a href=”https://www.financemagnates.com/cryptocurrency/crypto-lender-blockfi-files-for-bankrupty-protection-in-the-us/”>filed for bankruptcy protection</a> in the US. Earlier in the year, crypto lenders <a href=”https://www.financemagnates.com/cryptocurrency/news/celsius-network-reportedly-faces-us-federal-investigation/”>Celsius Network</a> and <a href=”https://www.financemagnates.com/cryptocurrency/ftx-us-wins-bid-to-acquire-voyager-digitals-crypto-assets/”>Voyager Digital</a> also filed for bankruptcy in the aftermath of the Terra-Luna collapse. Also, a British Virgin Islands court recently <a href=”https://www.financemagnates.com/cryptocurrency/news/three-arrows-capital-gets-liquidation-order-from-bvi-court/”>ordered the liquidation</a> of erstwhile Singapore-based crypto hedge fund, Three Arrows Capital.</p><p class=”MsoNormal”>According to CoinMarketCap, the global crypto market capitalization currency stands at about $840.67 billion, down from over $2 trillion at the start of the year. In August, bitcoin deposits on exchanges hit <a href=”https://www.financemagnates.com/cryptocurrency/news/btc-exchange-deposits-reach-the-lowest-level-in-2-years/”>a two-year low</a> amidst crumbling cryptocurrency prices.</p><p class=”MsoNormal text-align-justify”>Worsening Revenue</p><p class=”MsoNormal”>While Coinbase <a href=”https://www.financemagnates.com/cryptocurrency/news/coinbase-beats-q4-estimations-doubles-revenue/”>doubled its revenue</a> during the fourth quarter of 2021 to $2.5 billion, by the second quarter of 2022, the revenue <a href=”https://www.financemagnates.com/cryptocurrency/coinbase-posted-over-1-billion-losses-in-q2-2022/”>dropped to $808.3 million</a>, with over $1 billion posted in losses. At the end of the third quarter of the current fiscal year, its net revenue came in at $576 million, which is approximately a <a href=”https://www.financemagnates.com/cryptocurrency/coinbase-narrows-q3-losses-despite-a-declining-transaction-revenue/”>-29% decline</a>. </p><p class=”MsoNormal”>According to financial markets data provider, Refinitiv, analysts expect Coinbase’s revenue to tank by 75% to $621.5 million at the end of the fourth quarter.</p>
This article was written by Solomon Oladipupo at www.financemagnates.com.