Coin pumps shortly after better than expected Q4 profit reports

Coin pumps shortly after better than expected Q4 profit reports

The crypto exchange Coinbase reported a net turnover of $ 605 million in the fourth quarter of 2022, as can be seen from its latest result report, which was published on Tuesday after the bell.

Since their publication, the coin shares have briefly rose by $ 64 before they fall back to $ 62 in the after-board trade.

Coinbase survives the bear

The latest numbers of the stock exchange show an increase of 5 % compared to the $ 576 million of the previous quarter and are slightly above the estimates of the analysts of $ 588 million.

According to the company Submission , more than half of these income ($ 322 million) was generated from transactions during the rest from subscriptions and services (283 million US dollar). The former rose by 12 %compared to the previous quarter, the latter by 38 %.

Nevertheless, net sales of $ 7.4 billion dropped to $ 3.1 billion in 2022 in 2021-a reflection of the declining activity in the entire industry.

"Idiosyncratic events in 2022 tightened the already weak macro conditions," wrote the company. "Coinbase and the crypto economy have proven to be resistant, and the long-term fundamental data remain strong."

The entire operating costs of Coinbase have risen by 3 % since the third quarter-a number that would have dropped by 1 % if the stock exchange had not had the $ 50 million nydfs in early January. The department accused Coinbase department not to have carried out the necessary background tests of its customers, which exposed the company to exposed criminal activities, including possible money laundering and presumed child trade.

However, the company has taken other measures to keep the expenditure low in the first quarter of 2023, including 20 % HR reduction Until the end of the quarter, the company expects a cost of 25 % compared to the fourth quarter of 2022 if the NYDFS comparison is not taken into account.

The regulation comes

The report also found that in 2023 there will probably be an "significant year for cryptopolitics in the United States and abroad". After the collapse of FTX, conversations on this topic gained more attention last year and triggered measures by supervisory authorities that Coinbase does not like.

"Coinbase has concerns about these measures, which are more designed to be punitive and reactive than dealing with the actual consumer interests and the reality of how the works of crypto," said the company.

Brian Armstrong, CEO of Coinbase, spoke out against the recent procedure of the SEC against the stacking service of octopuses, which he believes that he does not violate the securities laws. His company also contested that stablecoins such as Busd would represent securities after the SEC issued a notification of Wells to the issuers of the financial value. paxos so much claim.

.