The largest cryptocurrency exchange in the United States suffered shocking losses in light of the decline in trading volumes after a series of scandals and bankruptcies in the cryptocurrency markets.
According to Arabiya.net, Coinbase Global's losses amounted to $557 million, after revenue declined by 75% in the fourth quarter of 2022.
Despite the significant decline in revenues, which recorded $629 million for the three months ending in December compared to $2.5 billion during the same period a year before last, it was higher than the average analyst estimate of $581 million.
Coinbase Global said in a statement on Tuesday that the loss, which was equal to $2.46 per share, was compared to a net profit of $840 million, or $3.32 per share, in the fourth quarter of 2021, according to Bloomberg.
The loss was the fourth in a row for Coinbase Global, which has suffered from extreme volatility in cryptocurrency prices. The company reduced 20% of its employees in January, after laying off 18% of its employees last June.
Coinbase Global stated in a letter to investors on Tuesday that 2023 will be the year of regulatory focus. We believe our strong foundation will make us a net beneficiary of this new environment.
In turn, Finance Director Alicia Haas said in an interview: We will take the necessary steps, without ruling out more layoffs. She added that the company does not expect to significantly increase the number of its employees, which is expected to reach about 3,650 people.
The company's market share of transactions declined significantly, dropping to 4.1% in February, compared to a share of 5.9% in November of the broader crypto market, according to CryptoCompare data. Binance, the world's largest cryptocurrency exchange, gained nearly 60% stake in February, according to the research firm.
Shares of Coinbase Global are up about 75% so far this year as rising cryptocurrency prices have boosted trading volumes.
