Sam Bankman-Fried, CEO of cryptocurrency exchange FTX, believes that Coinbase Global Inc’s COIN actual revenue may be different from what is presented in its earnings report.
What Happened: In a series of tweets, Bankman-Fried said that the cryptocurrency exchange’s “real revenue” from transactions was likely closer to $650 million.
“That leads to a loss of roughly $700m, plus another $400m from impairment,” he said.
“My guess is the vast majority of the expenses are coming from payroll/bonuses/etc. here.”
After accounting for stock-based compensation paid to the exchange’s 5,000 plus employees, the FTX chief estimated that Coinbase’s real net revenue was around $2.5 billion, while expenses from employee compensation and other areas were a cumulative $5.5 billion.
“It'll be interesting to see the impact of their recent headcount changes on upcoming earnings,” wrote Bankman-Fried, who estimates that the company is losing around $3 billion a year.
He also pointed to macro-sentiment that could potentially swing in Coinbase’s favour in the months to come.
“Remember: Coinbase is more sentiment-dependent than FTX! Large upside in a recovery,” he said.
Coinbase shares fell 10.55% on Tuesday after it reported revenue of $802.6 million, missing the Street estimate of $830.5 million. The stock was trading 5.45% lower after hours.
Meanwhile, the crypto market saw a 3.77% decline to $1.08 trillion over the last 24 hours. At press time, Bitcoin BTC/USD was trading at $22,895, down 3.5% and Ethereum ETH/USD was trading at $1,682, down 4.8% as per data from Benzinga Pro.
Photo courtesy: Cointelegraph on Wikimedia
Edge Rankings
Price Trend
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
