Coinbase is now part of the iconic list of the largest US companies alongside giants like Amazon, Apple, and Walmart.
- It is the first cryptocurrency company to enter fortune 500the list of the largest companies in the US.
- The income of coinbase to classification comes in the midst of a bear market.
- Shares of the exchange have fallen since its debut last year. Will you qualify for fortune 500 in 2023?
The cryptocurrency exchange coinbase has become the first company in the digital asset industry to reach fortune 500a ranking of America’s largest companies.
the legendary magazine fortune added to coinbase to its annual list, which was published on Monday of this week. The exchange of cryptocurrencies, which is listed on the nasdaqoccupies the post No. 437 of the classification of this 2022.
Published since 1955, fortune 500 is a ranking of the largest corporations in the United States by total revenue. In accordance with CoinDeskthe listing accounts for two-thirds of US GDP, with revenues totaling $16.1 trillion.
Walmart topped the ranking for the 10th year in a row with revenue of about $573 billion, followed by amazon Y Manzana with figures of almost 470,000 million and 365 billion dollars respectively. In addition to coinbaseno other cryptocurrency company is included in the list.
coinbase enter to fortune 500 in the middle of crypto winter
coinbasewhich began trading on the US stock market in April of last year, entered the classification of fortune 500 this 2022 after recording revenues of more than USD $7.8 billion for fiscal year 2021.
The editor-in-chief of FortuneAlyson Shontell described the exchange as one of the “several winners of the pandemic” what “thrived under the strange circumstances of COVID” and they flourished from then on, according to CoinDesk.
However, the debut of coinbase in the well-known list of American companies, it does not occur at the best time for the company, as pointed out by The Block. This year, the exchange has been facing the adversities of a bear market and is estimated to bring in revenue lower than the 7.8 billion 2021 dollars that landed it on the list.
Specifically, for the first quarter of 2022, the company Registration net income of USD $1,160 million and a net loss of USD $430 million. For comparison, the net income of coinbase for the fourth quarter of last year they were 2,490 million dollars. The drop in revenue coincides with the collapse of cryptocurrency market prices, a scenario that has caused trading volumes across all exchanges to drop.
In light of these events, Mizuho Securities has reduced your estimates for income from coinbase for the full year 2022 from $6.7 billion to $5.6 billion due to “crypto winter“, according to a report Barron quoted by The Block.
Actions of coinbase go down
The actions of coinbase (COIN) have also fallen as the market heads into bearish territory. The share price of the exchange It hit as low as $40 earlier this month, down 88% from its debut, when it topped $325. At the time of editing, COIN is trading around $60.
The company has announced some measures to deal with the latest market turbulence. According to the president and director of operations, Emilie Choi, coinbase plans to reduce hiring in 2022.”Given current market conditions, we believe it is prudent to reduce hiring and reassess our staffing needs against our highest priority business goals.Choi said in a blog post, which was quoted by The Block.
Choi assured that coinbase is “in a strong position” and has a “strong balance sheet“. He further said that the exchange has been through several market downturns in the past and has emerged stronger and stronger.
The challenge will be to see if by 2023 coinbase will be able to re-enter the ranking fortune 500.
Article by Hannah Estefanía Pérez / DailyBitcoin
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