Coinbase Posts Impressive 22% Revenue Jump in Q1, but Reports $79M Loss

Cryptocurrency exchange Coinbase has reported a 22% increase in net revenue quarter over quarter, reaching $736 million.

This growth was accompanied by a 24% decrease in operating expenses from the previous quarter, which the company attributed to recent downsizing efforts.

Coinbase stated that it is becoming a more efficient company that is able to do more for less, resulting in a more positive financial outlook.

Despite a net loss of $79 million, Coinbase generated $284 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBIDTA). The company’s restructuring plan, which saw the layoff of 950 staff in January, cost $144 million, near the lower end of its previous estimates.

Coinbase also acknowledged the loss of Silvergate Bank and Silicon Valley Bank as banking partners. The company reported that it has replaced these banks’ 24/7 instant settlement services and onboarded new partners to ensure redundancy.

The news of Coinbase’s positive financial report has boosted its stock, with COIN up 1.51% today and up 7.05% after hours. Despite some setbacks, the cryptocurrency exchange continues to demonstrate its resilience and adaptability in a rapidly changing market.

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