Coinbase, the US-based cryptocurrency exchange, has announced that its net loss significantly decreased in Q1 2023, partly due to a rise in revenue from retail investor trading activityIn Q1, Coinbase managed to reduce its net loss from $557 million in Q4 2022 to $79 million. Coinbase’s revenue from transactions also increased by 16% QoQ to $375 million, with interest income and blockchain rewards from staking being the largest sources of revenue.
Transaction revenue from Coinbase’s institutional base increased 66% to $22.3 million, while transaction revenue from retail investors increased 14.1% to $352.1 million. Despite flat trading volumes, Coinbase’s Q1 2023 results exceeded analysts’ expectations, leading to a 7% increase in its share price during after-hours trading.
After reducing its staff by 18% in June 2022 and an additional 20% in January 2023, Coinbase CEO Brian Armstrong described the quarter as a “turning point” for the company, as it aimed to become a more “financially disciplined” firm.
