Crypto exchange Coinbase disclosed a public company net loss of $430 million in the first quarter, but CEO Brian Armstrong said in an earnings call: “We are more optimistic than ever about where we are as a company. ” he said.
Coinbase in Q1 2022 report open Revenue fell 27% to $1.17 billion from $1.6 billion in the first quarter of 2021, a sharp drop from $2.5 billion in revenue in the fourth quarter of 2021. Monthly transaction users also fell to 9.2 million, down more than 19% from 11.4 million in the last quarter.
Coinbase’s share price has already fallen more than 16%, closing at $73 for the day, and the price has fallen further to $61 at the time of this writing after an hourly traded earnings release. Coinbase’s stock price has steadily declined since November 2021, reaching its highest price of $380 at the time of its initial public offering (IPO) in April of last year.
Despite the numbers, Armstrong explained why he was still optimistic about his earnings. telephone:
“There are so many customers knocking on our door that every hand has to be on deck to keep everything working. So periods of downtime are often a welcome change in the sense we have to focus on. Next cycle of innovations that will help us in the next cycle. It’s about building a hierarchy.”
Armstrong said the company is “greedy when others are afraid” and focuses on attracting talent and focusing on projects and infrastructure for the future. He spoke of what he called the “elephant in the room” of the company’s declining earnings:
“The broader market has fallen. We see a downtrend in growth tech stocks and risky assets. Coinbase and cryptocurrencies are no exception. The good news is that, as a cryptocurrency company, we have gone through various cycles of cryptocurrency, including major declines. I think it’s a great fit for us to run this kind of environment.”
He reminded shareholders of a guide released by the company a year ago, which aims to grow cryptocurrency adoption over the long term and run the company at a rough break-even point.
In a letter to its shareholders, Coinbase mentioned the recent launch of the Non-Fungible Token (NFT) market as an area it is focusing more on becoming a market leader in this space, referring to the platform as “cryptoeconomics”.
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Armstrong revealed that 54% of the platform’s active users are doing anything other than crypto trading, but in his opening statement he didn’t clarify what they’re doing and didn’t mention the new NFT market.
When asked specifically if the company was satisfied with its activities in the NFT market, Armstrong said that it did not share “an indicator of our new initiative.” “
On-chain metrics on the first day the marketplace went public, 150 trades generated $75,000 in volume, a small percentage of the more than 8 million waitlisted email addresses.
After his opening remarks, Armstrong added that the industry is in its infancy and that Coinbase “whether the market rises or falls, we will keep moving forward.”