Message board speculation led to Coinbase getting questioned during their most recent earnings call.
- Coinbase Responds to Rumors
- 2022 Q1 Results For Coinbase
Coinbase Responds to Rumors
Q1 ’22 financial results are in.
Check out our letter to shareholders here 👉https://t.co/4oxQcGt4yh
— Coinbase (@coinbase) May 10, 2022
During their 2022 Q1 earnings call, America’s biggest crypto exchange Coinbase revealed whether or not it was considering an acquisition of Robinhood, the controversial stock trading platform. According to their Chief Operating Officer (COO) Emilie Choi, such an acquisition is not a part of the exchange’s long-term vision.
Coinbase is no stranger to acquiring stakes in crypto companies, as evidenced in their Coinbase Ventures initiative, which has invested in NEAR Protocol, Polygon, and Celo. However, it appears Coinbase isn’t interested in expanding past crypto.
Robinhood, despite the focus of their business being on traditional equities, does offer buying and selling of crypto. In addition, the fintech app recently expanded its crypto operations to include more cryptocurrency offerings (like Shiba Inu and Compound) as well as crypto wallets — its users were previously unable to transfer their crypto off the platform.
Coinbase’s 2022 Q1 Results
Coinbase reported its first loss as a publicly-traded company. It had previously reported strong results since going public back in April of 2021.
Those strong results included occurred during months when crypto struggled in 2021, like from May to July. Bitcoin during that time fell below 30k USD. Despite the price of Bitcoin not falling below 30k during Q1, and the overall market cap in step or above 2021 levels, Coinbase revenue (1.6 to 1.2 billion) and monthly users (11 million to 9 million).
However, the majority of Q1 took place during a myriad of macro issues (rate hikes, Ukraine war) that destabilized not only crypto, but equities as well. “The broader markets are down. We’re seeing a downmarket for growth tech stocks and risk assets, Coinbase and crypto is no exception to that,” Brian Armstrong, Coinbase CEO said.
Nevertheless, Coinbase is still looking strong. The company has a war chest for downtimes, and after several successful quarters — and a very lucrative public offering — it’s well-heeled to deal with more downturns.
“The good news is as a crypto company we’ve lived through many different cycles in crypto, including major draw downs, which I think make us well suited to operate through these environments,” Armstrong noted.
Recommended: Believe It Or Not, Brian Armstrong Used To Hate Altcoins