Coinbase released its financial report for Q1 2022 in an official shareholder letter on Wednesday. The exchange raised $1.17 billion in revenue in the first quarter, down 31% from the previous quarter.
Coinbase CEO Brian Armstrong stated:
“We are not in danger of going bankrupt, but we have added a new risk element based on an SEC requirement known as SAB 121, which is a newly mandatory disclosure for public firms that store crypto assets for third parties.”
By the conclusion of Q1, the exchange’s monthly transactional users (MTUs) had dropped to 9.2 million, a decrease of 2.2 million from Q4. The second quarter of 2022 began with 8.9 million MTUs. According to the letter, the platform’s total assets in Q1 were $256 million, down $22 million from Q4.
Despite these drops, the exchange’s new Cardano (ADA) staking enrollment attracted more customers to participate in its yield generation products. From 3.6 million users in Q4 2021 to 5.8 million in Q1 2022, the user base climbed by 17%. Coinbase NFT, the native NFT marketplace that started on May 4, has struggled to attract many customers. Since April 20, the NFT marketplace has begun 2,273 transactions and has 1,837 users, according to statistics.
“Our investment in our business today is especially crucial,” the Coinbase team explained, “since these periods of low volatility can allow us the chance to focus more intensely on product development.” Trading volume and MTUs are also expected to be significantly lower in Q2 than in Q1.
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