Coinbase Made $2.2 Billion in Revenue from Transaction Fees in Q4

Coinbase, the most prominent crypto exchange in the U.S., has announced revenue of $2.2 billion. The impressive amount represents the platform’s income only from transaction fees within Q4 2021. It is among the highest profits that crypto exchanges generated in recent years. Above all, it surpassed analyst expectations by no less than 27%.

Coinbase’s Success in Numbers

Last year, FactSet consensus predicted Coinbase to gain around $1.9 billion in revenue for the latest financial quarter. However, it seems that the U.S. exchange took the forecast as an insult. Jokes aside, the platform went on to generate over $2.2 billion in revenue and above everyone’s expectations.

Furthermore, Coinbase more than doubled its transaction revenue from Q3. That took its total transaction volume for 2021 to $6.8 billion. The data sustaining the platform’s success include:

  • $840 million in net income
  • 4 million transacting users in Q4
  • COIN share prices fell by 30% for 2021.

Additionally, Coinbase gained 9% of Q4 revenue, nearly $213 million, from lending, staking, and other non-trading operations.

Recent Boom Spurs Further Development

Coinbase does not plan to rest on its laurels for too long despite its recent success. The US-based exchange announces aggressive internal investments in 2022 and plans to hire over 6,000 new employees.

In a recent letter to its shareholders, the company also discussed potential setbacks due to crypto market volatility:

In the event of a material decline in our business, below the ranges, we have planned for, we may slow down our investments and would expect to manage our adjusted EBITDA losses to approximately $500 million on a full-year basis.

The instability of the crypto market is not the only factor casting a shadow on the platform’s development. For instance, internal issues and malfunctions could stain its brand. Recently, a white-hat hacker discovered a lethal bug on the Coinbase interface. That’s enough to push some customers away straight into the competition’s hands.

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Nevertheless, Coinbase is looking to expand its business and generate even more revenue in 2022. The company predicts investments between $4.25 and$5.25 billion this year, primarily in technology and development.

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