In a report issued on Thursday, Cryptocurrency exchange Coinbase Global Inc stated that the first quarter of the year had a net loss of $79 million, marking the fifth consecutive quarter in which a deficit was recorded.
However, compared to the quarterly losses experienced throughout 2022, the net loss in the most recent quarter was significantly lower.
Coinbase lost money every quarter of the previous year, for a total net loss of nearly $2.6 billion in 2022, after generating a net income profit of around $3.6 billion in 2021.
In the first three months of 2023, the company’s net sales increased by 22% from quarter to quarter while its overall operating expenditures decreased by 24%, according to data released on Thursday by the exchange.
In a letter to shareholders, Coinbase stated that “this quarter represented a turning point in our drive towards building a company that is more efficient and financially disciplined.”
Less than half of the $309 billion the exchange witnessed in the first quarter of 2022, Coinbase’s trade volumes in the most recent quarter were $145 billion, unchanged from the previous quarter.
The corporation is currently dealing with a lot of regulatory ambiguity when the financials are released.
In March, Coinbase received a Wells notice from the SEC for allegedly violating securities laws. The business says it has never listed securities, according to Coinbase Chief Legal Officer Paul Grewal, who stated last week that the company is prepared to “vigorously defend ourselves.”
Regarding the Wells notice, Coinbase stated in the letter, “We see this as an opportunity to continue pushing for a clear rule book in the US for crypto regulations. The United States can’t afford to lag in this crucial area of technology that might modernize the banking system and safeguard 1 million American jobs.”
Last week, Coinbase also submitted a petition to the US Court of Appeals, Third Circuit, asking the SEC to “take action on Coinbase’s pending rulemaking petition to provide clarity for the crypto industry.”
The business mentioned in a letter, “We maintain our goal to improve full-year 2023 adjusted EBITDA in absolute dollar terms versus full-year 2022.”
In a statement, the business cautioned investors against concluding this data, stressing that “last year’s experience reminds us how quickly the market can evolve.”
As of Thursday’s close, Coinbase shares, which in 2022 lost 85% of their value, had risen nearly 40% so far this year as cryptocurrencies gain some traction.