Coinbase Isn't Staying Warm This Crypto Winter: Firm Expects Way Less Than What It Made In 2021, CEO Says

Zinger Key Points
  • Coinbase will likely produce less than half of what it did in 2021, CEO says.
  • Coinbase cut 18% of its workforce in June, and laid off 60 staff members in November.
Coinbase Isn't Staying Warm This Crypto Winter: Firm Expects Way Less Than What It Made In 2021, CEO Says

Coinbase Global Inc COIN CEO Brian Armstrong expects the company’s revenue to be less than half of what it was in 2021 due to the so-called “crypto winter.”

What Happened: “This year, with everything coming down, it’s looking, you know, about roughly half that or less,” Armstrong told Bloomberg.

Coinbase brought in $7 billion in total revenues in 2021, with roughly $4 billion of that being positive EBITDA.

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The company has previously stated that it expects a loss of no more than $500 million in 2022 based on adjusted EBITDA.

Coinbase had not previously offered a full-year revenue outlook, but Armstrong's estimate is in line with the $3.2 billion projected.

Why It Matters: The nascent crypto industry was dealt blow after blow this year (i.e., Terra's crash and FTX's collapse).

As far as what 2023 will look like for Coinbase, CFO Alesia Haas says the company is easing into 2023 with a conservative bias, expecting more headwinds as the entire industry recovers from the ongoing fallout of FTX.

“We are preparing and we are developing plans that we will be more conservative next year. These headwinds could persist or possibly intensify,” Haas said.

Coinbase has had multiple rounds of layoffs this year: An 18% reduction in June, and most recently in November when it laid off around 60 staff members.

The company issued earnings in early November that showed a loss of $2.40 per share, on revenues of $576 million — a 28% sequential decline.

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COIN Price Action: Shares of Coinbase are trading 1.51% lower Wednesday to $41.77, according to data from Benzinga Pro. The stock has a 52-week high of $290.00, and a 52-week low of $40.55.

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