Coinbase Earned $2.5B in Net Revenue in Q4 2021

  • A shareholder letter from Coinbase revealed that the company had earned $2.5 billion in net revenue, and 11.4 million in monthly transacting users during Q4 2021.
  • The exchange will now focus on aggressive internal investments, such as hiring 6.000 employees with focus on customer support and platform reliability.
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Cryptocurrency exchange Coinbase has reached $547 billion in trading volume and $2.5 billion in net revenue during the fourth quarter of last year, the company said in a earnings call on 24 February.

The numbers posted by Coinbase surpass the FactSet consensus forecast that the exchange will generate a revenue of around $1.9 billion in Q4 2021 by around 27%. Coinbase also revealed on Thursday that it had reached $840 million in net income for Q4, and that it had gown its monthly transacting users (MTU) from 7.4 million in Q3 to 11.4 million in Q4. The crypto exchange said in its shareholder letter:

“In 2021, millions of new users joined the cryptoeconomy through Coinbase; we generated $7.4 billion in net revenue – including $2.5 billion in the fourth quarter; we became the first publicly traded crypto asset trading platform; and we made substantial progress in building a best-in-class infrastructure to enable easy, safe and secure on-ramps and access into the global cryptoeconomy.”

Coinbase’s metrics also show that from the $547 billion in reported volume, $371 billion came from institutional traders, while $177 from retail. The $2.5 billion in net revenue is also significantly higher than it was in Q3 — when Coinbase earned roughly $1.31 billion — as are the assets on the platform, which rose from $255 billion to $278 billion.

The shareholder letter also noted that Coinbase plans for aggressive internal investments in 2022, such as hiring 6,000 employees with a focus on customer support and platform reliability. The company also noted that the growth of Web3, non-fungible tokens (NFTs), and decentralized finance (DeFi) could offer the exchange new sources of revenue and growth.

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