![]() The impacts continue to ripple through the industry in the form of bankruptcies and layoffs.Ĭrypto firms cut almost 9,500 workers through 2022, according to an annual report from The Block Research. Hit by shrinking investor appetite for risky assets, cryptocurrency prices plunged last year, leading to the collapse of some heavily leveraged investors. As of the end of its third quarter for 2022, Coinbase held $5 billion in cash and cash equivalents. The company hasn’t yet shared a date for when it will deliver its 2022 fourth-quarter earnings. The company further broke that down into $58 million to $68 million in cash charges for employee severance and termination benefits, with $91 million to $95 million in expenditures being paid out as stock-based compensation.Ĭoinbase said in an SEC filing that following these cost cuts, "Adjusted EBITDA for the full year ended Decemis expected to be within the negative $500 million loss guardrail that the Company provided in the Shareholder Letter." The company said it intends to complete the overall cost-cutting plan by the second quarter of this year.Ĭoinbase said it estimates it will pay between $149 million to $163 million in total restructuring costs. ![]() ![]() With this third round of layoffs for the firm, the company has cut 2,110 workers since June 2022 and projects it will slash operating expenses by around 25% for the first quarter compared to Q4 of 2022. In the face of increasingly challenging economic conditions, we made the difficult decision to further reduce the size of our teams to ensure we have the appropriate operational efficiency to weather downturns in the crypto market, and capture opportunities that may emerge." But this essentially when someone purchases cryptocurrency and then the option to store those coins for utilization for a period of time."We also saw the fallout from unscrupulous actors in the industry, and there could still be further contagion. They had first acknowledged this in their first quarter of 2022 earnings, how their revenues would ultimately be benefited by staking. This has been built into their business model for Coinbase, as well as some of the other cryptocurrencies exchanges. It's a part of their business that they were looking to grow out even more. And so the wallet product pretty considerable there.Īnd then additionally, on the earn side, as it relates to staking, that's increasingly important, too. And Coinbase has built a business around that storage as well. And then storage comes into play of those cryptocurrencies. On the wallet side, at least, of course, Coinbase is one of the larger players there, considering you can buy and sell cryptocurrencies. And Coinbase has positioned this as such.īRAD SMITH: Yeah, and it's particularly taking aim at a part of their earn, their prime, and their wallet products here. But obviously, this is also important for the bigger crypto landscape. But this is- it has to do with Coinbase itself and whether it is going to be regulated further by the SEC, whether it is- its assets that it's peddling are securities, whether they're not securities. Coinbase has pressed back pretty forcefully against the SEC and has been really for quite some time now. Traditionally, if you're an investor in a company that gets a Wells notice, that is not something that you want to hear.
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