One of the most well-known bitcoin exchanges, Coinbase, anticipates a sharp decline in income in 2022. Brian Armstrong, CEO of Coinbase, claims that investors’ confidence has been shaken by falling prices and the closure of rival exchange FTX. As a result, revenues may decline by as much as 50% from levels in 2021.
In 2021, we generated nearly $7 billion in sales and $4 billion in positive EBITDA; this year, with everything falling down, it’s looking like about half that amount or less, according to Armstrong.
Investors are presumably not shocked by the anticipated decline. Prior to the release of Coinbase’s third-quarter financial report, FactSet polled analysts, who predicted that the company would generate $3.3 billion in revenue annually by 2022. According to current estimates, it will be $3.2 billion, which is a 59% drop from estimates for 2021. In particular, according to FactSet, Coinbase generated $7.8 billion in sales in 2022.
Furthermore, Coinbase stock has decreased by more than 80% in 2022, and the business’ third-quarter revenue is just a fourth of what it was in the final three months of 2021, when Bitcoin reached an all-time high.
The sudden decline of FTX
According to the CEO, Coinbase’s annual revenue will decline by 50%. This article first appeared on Coin Edition.
