Coinbase beats Q4 earnings estimates amid falling transaction volume
U.S.-based cryptocurrency exchange Coinbase beat earnings expectations in Q4 2022, but transaction volume continues to decline.
The net proceeds of the exchange amounted to $605. million for the quarter, surpassing $589 million in revenue. reportedly according to Wall Street analysts
Transaction volumes were down 12% quarter-on-quarter, but Coinbase cited a 34% increase in subscription and services revenue as the reason for the 5% increase in total revenue for the quarter.
Our financial results for the 4th quarter and the 22nd financial year have been published.
Our letter to shareholders can be found on the Investor Relations website at https://t.co/8ovHEtPRgf
— Coinbase (@coinbase) February 21, 2023
While Coinbase reaffirmed its belief that its staking products are not securities, staking revenues fell quarter-on-quarter as falling cryptocurrency prices outweighed the increase in balances across all cryptocurrencies.
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The exchange is currently pursuing an investigation by the Securities and Exchange Commission (SEC) into its betting products, similar to the one that led its peer-to-peer crypto exchange Kraken to settle with the regulator for $30 million.
Coinbase noted that 2022 has been a “challenging year for the crypto markets” as macroeconomic events and developments such as the bankruptcy of crypto hedge fund Three Arrows Capital and the Voyager and Celsius exchanges resulted in strong headwinds for the industry.
Credit : cointelegraph.com