Coinbase CEO expects revenue to plunge over 50% on battered crypto prices - tweet


FILE PHOTO: A representation of cryptocurrency is seen in front of Coinbase logo in this illustration taken March 4, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) -Coinbase Global Inc's revenue is set to reduce by half this year, the cryptocurrency exchange tweeted on Wednesday, as digital assets reel from a sector-wide rout worsened by a string of high-profile collapses that shattered investor confidence.

"(Chief Executive Officer Brian Armstrong) indicated that he expects Coinbase FY2022 revenue to be less than half of FY2021 revenue,” the company said in a tweet.

Cryptocurrencies wiped away nearly $2 trillion from the sector as higher interest rates and exacerbating worries of an economic downturn cratered prices that eliminated key players such as Voyager Digital, Three Arrows Capital and Celsius Network.

But the bigger blow to digital assets came since larger crypto exchange FTX filed for bankruptcy protection. Its swift fall from grace followed heavy speculation about its financial health that triggered $6 billion of withdrawals in just 72 hours.

The expected plunge in revenue was first reported by Bloomberg News on Wednesday, citing an interview with Armstrong.

Analysts expect Coinbase's revenue to plunge 75% to $621.5 million in the fourth quarter, according to data from Refinitiv. Its shares have wiped away over 80% so far this year.

(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Krishna Chandra Eluri and Maju Samuel)

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

   

Next In Tech News

Italy's TIM suffers internet connection problems
'Shock to the education system': This AI chatbot is already writing school essays and could rewrite the future of learning
Opinion: To AI or not to AI? It’s not even a question Hollywood is embracing artificial intelligence
Opinion: AI voices for audiobooks is a strange new trend
How 'crunch' time and low pay are fuelling a union drive among video game workers
Preview: 'Like a Dragon: Ishin!’ brings an old formula into the past
Elon Musk says to attempt Starship launch in March
Advisory firm Innisfree sues Musk's Twitter for $1.9 million in unpaid bills
ChatGPT makers launch tool to spot AI texts – but it's not very good
U.S. judge denies FTC request to stop Meta from acquiring VR firm Within

Others Also Read