Cryptocurrency exchange Coinbase reported a quarterly loss due to lower trading volumes during a “crypto winter” period. The company recorded a loss of $53.7 million in the fourth quarter of 2022, compared to a profit of $121.4 million in the previous quarter. Revenue for the quarter was $1.34 billion, down from $1.9 billion in the previous quarter.
The decrease in trading volumes was primarily driven by a decline in bitcoin prices, which fell more than 50% from their all-time high of nearly $69,000 in November 2021. However, the company reported that its user base continued to grow, with 9.9 million monthly transacting users in the quarter, up from 8.8 million in the previous quarter.
Coinbase also noted that it has continued to invest in its infrastructure and expand its product offerings, including the launch of its Coinbase Card in the United States and a new mobile app for its Coinbase Pro platform.
Despite the loss, Coinbase remains optimistic about the future of the cryptocurrency industry and its role in it. The company’s CEO, Brian Armstrong, stated that he believes that cryptocurrency will become a more mainstream asset class over time and that Coinbase is well-positioned to help lead that transition.
Overall, Coinbase’s quarterly loss highlights the volatility of the cryptocurrency market and the challenges faced by companies operating within it. However, the company’s continued growth in user base and investment in infrastructure indicate that it remains committed to the industry’s long-term potential.
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