Coinbase CEO Sees Revenue Drop 50% or More on Crypto Rout

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Coinbase chief executive Brian Armstrong said revenue from the cryptocurrency exchange is expected to be cut in half or more this year as prices drop and investor confidence plummets from rival FTX. According to a report: The rapid fall of FTX capped what was already a brutal year for the cryptocurrency industry, with speculators retreating as the prices of some of the most frequently traded tokens fell. Shares of Coinbase fell more than 80% in 2022, and the company’s third-quarter revenue was about a quarter of what it was in the last three months of 2021, when Bitcoin’s price peaked.

“Last year, in 2021, we had about $7 billion in revenue and about $4 billion in positive EBITDA, and this year, with everything going down, it looks like, you know, about half or less,” Armstrong said in a wide range. interview on Bloomberg’s “David Rubenstein Show: Peer-to-Peer Conversations,” when asked about the company’s earnings. In additional comments provided after the interview, a Coinbase spokesperson clarified that they expect 2022 revenue to be less than half of 2021 revenue. a loss in 2022 of no more than $500 million based on adjusted EBITDA, a measure of earnings that excludes certain costs such as interest and amortization.

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