Inaya Mclaughlin
Coinbase is a popular cryptocurrency exchange platform that allows users to buy, sell, and trade cryptocurrencies. The company was founded in 2012 and has since become the largest cryptocurrency exchange in the United States by volume. Coinbase offers a wide range of crypto and fiat currency exchanges and has over 250 cryptocurrencies available for users to trade. In 2023, Coinbase generated $2.9 billion, a 6.4% decline from the previous year, and made a net profit of $95 million. The company has faced allegations of overcharging customers and has been criticised for its high transaction fees and poor customer service. In June 2023, the Securities and Exchange Commission (SEC) charged Coinbase with operating an unregistered securities exchange. Despite this, Coinbase has a vast user base of over 100 million verified users worldwide and is considered a top cryptocurrency exchange in the US.
What You'll Learn
Coinbase's revenue and net income in 2023
Coinbase's revenue and net income for the first quarter of 2024 were $1.6 billion and $1.2 billion, respectively, surpassing its full-year 2023 earnings. The company's adjusted EBITDA for 2023 was $977.5 million.
Coinbase has seen significant growth in recent years, with its net revenue increasing year over year. The company's net revenue in 2020 was $483 million, which increased to $1.14 billion in 2021. Coinbase's global revenue for 2018 was estimated at around $520 million.
The company's business model relies heavily on transaction revenue, which accounted for "over 96 percent" of its net revenue in late 2020. The growing interest in cryptocurrencies, particularly Bitcoin, has positively impacted Coinbase's financial performance.
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The company's valuation in 2021
Coinbase's valuation in 2021 is difficult to ascertain. However, the company reported a nine-fold increase in first-quarter revenue in 2021, from US$190.6 million the previous year to US$1.8 billion. This surge was attributed to the increase in the price of Bitcoin during that period.
On April 14, 2021, Coinbase became a public company on the Nasdaq exchange via a direct stock listing. Nasdaq set a reference price of US$250 a share, giving the company an estimated value of US$47 billion. At the end of its first day of trading, Coinbase closed at US$328.28 per share.
Coinbase's valuation in 2021 can also be contextualised through its historical performance. The company was founded in 2012 and received a US$150,000 cash infusion from the Y Combinator startup incubator program. In May 2013, it received a US$5 million Series A investment, and in December of the same year, it secured a US$25 million investment from venture capital firms. In 2014, the company grew to one million users and acquired the blockchain explorer service Blockr and the web bookmarking company Kippt. It also partnered with Overstock, Dell, Expedia, Dish Network, and Time Inc., allowing these firms to accept bitcoin payments.
In 2015, Coinbase received a US$75 million investment and launched a U.S.-based bitcoin exchange called Coinbase Exchange. The company continued to expand its operations and services in subsequent years, including the addition of retail support for Ether in 2016 and obtaining a license to trade in Ethereum and Litecoin from the New York State Department of Financial Services in 2017. In 2018, Coinbase formed an early-stage venture fund, Coinbase Ventures, and in 2019, it acquired the "blockchain intelligence platform" Neutrino for an undisclosed price.
Coinbase's total assets under control in 2021 were over US$101 billion, and the company has continued to grow, reporting 105 million users worldwide and 9.5 million monthly active users in 2023.
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The number of Coinbase registered users in 2023
Coinbase is a leading cryptocurrency exchange platform that was founded in 2012. The company registered its first million users within two years of its launch.
Coinbase defines monthly transacting users as all users with at least one transaction on the platform during a 28-day period. As of Q1 2023, Coinbase had 8.4 million monthly transacting users. This number increased to 8.8 million by Q2 2023.
Coinbase stopped disclosing the number of verified users after Q4 2022. However, the platform had 110 million verified users in Q4 2022 and added 21 million new verified users between Q4 2021 and Q4 2022.
Coinbase is projected to have 150 million verified users by the end of 2023 and 25 million monthly transacting users.
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The number of Coinbase monthly active users in 2023
Coinbase is a cryptocurrency exchange platform founded in 2012. It is the largest cryptocurrency exchange in the United States in terms of trading volume.
Coinbase has seen a steady increase in its monthly active users since its inception. In 2023, the platform recorded 9.5 million monthly active users, a slight increase from the 9 million active users in 2022. This growth can be attributed to the increasing public adoption of cryptocurrencies, effective marketing strategies, and a strong marketing and outreach campaign.
Coinbase defines its monthly active users as those who have made at least one transaction on the platform during a 28-day period. The company's total registered users also increased to 105 million in 2023, up from 73 million in 2021.
The company's revenue declined in 2023, dropping to $2.9 billion from $3.1 billion in 2022. However, Coinbase made a net profit of $95 million in 2023, reversing a $2.6 billion net loss in the previous year.
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The number of cryptocurrencies available on Coinbase
Coinbase offers a wide range of cryptocurrencies and fiat currencies for exchange. The exact number of cryptocurrencies available on Coinbase is unclear, with sources citing different figures. One source states that Coinbase offers over 250 different cryptocurrencies to US customers, while another mentions that the company has 247 cryptocurrencies, 3 fiat currencies, and 589 markets (cryptocurrency trading pairs). Coinbase Prime, a platform for brokerage and asset custody, supports more than 240 digital assets and 300 different trading pairs.
The discrepancy in the number of cryptocurrencies offered by Coinbase may be due to geographic restrictions or the specific Coinbase entity used to custody assets. Coinbase is available in over 100 countries, and the company has stated that clients may have different asset availabilities based on their location.
Some of the popular cryptocurrencies supported by Coinbase include BTC, ETH, AVAX, SOL, ADA, USDC, DOGE, MATIC, and USDT. The platform also offers stablecoin trading pairs, such as USD Coin, which is a digital stablecoin that allows customers to exchange US dollars for a cryptocurrency with the same value.
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Frequently asked questions
Coinbase has received investments in the form of funding from venture capital firms and other investors. In May 2013, the company received $5 million in Series A funding, followed by a $25 million investment in December of the same year. In January 2015, Coinbase received an investment of $75 million. The company went public in 2021 and was valued at around $47 billion at the end of its first day of trading on the Nasdaq exchange.
Coinbase's revenue has fluctuated since its founding in 2012. In 2023, the company generated $2.9 billion, a 6.4% decline from the previous year. Coinbase reported a net profit of $95 million in 2023, reversing a $2.6 billion net loss. The company's revenue declined further in 2024, with a reported $3.1 billion, a decrease from $3.4 billion in 2022.
Coinbase's valuation has changed over time. The company was valued at $65 billion in 2021 but has seen a significant drop since then. As of 2024, Coinbase's exact valuation is unclear, but it is likely lower than the 2021 figure due to the decline in revenue and other factors.
