COIN: Beneficiary of Crypto Recovery?

- Net Revenue +22% QoQ
- Total opex -24% QoQ
- Net loss of $79 million
- $284 million in adjusted EBITDA

Good:
- Strong balance sheet, with $5.3billion USD resources in reserves
- Generated positive adjusted EBITDA
- No loss of customer funds → fiat are fully insured by FDIC and held in money market funds

Bad:
- Potential crypto regulations
- Decline in net revenue from 1 year ago

Despite flat trading volume, total transaction revenue increased 16% QoQ to $375 million.

Still a long way from the $1 billion in transaction revenue which the company reported a year ago.

The company's success is highly tied to the demand for crypto.

With crypto's huge drawdown in 2022, not surprising that revenues have been on the decline for Coinbase since a year ago.