Giant Cryptocurrency Exchange Coinbase Signed a “Principle”!
US-based giant cryptocurrency exchange Coinbase entered the Fortune 500, the annual list of America’s largest companies by revenue, at 437th place. With this success, Coinbase became the first cryptocurrency company to enter the Fortune 500.
The development took place despite the current circumstances caused by Coinbase’s downtrend cryptocurrency market conditions. On the other hand, this is due to the fact that Fortune has ranked companies according to their 2021 revenues for the 2022 list.
Fortune Media announced on Monday that the revenue threshold for the 2022 Fortune 500 list is $6.4 billion, up 19 percent from last year’s cap. Coinbase’s 2021 revenue was $7.8 billion, according to Fortune. But this year hasn’t been good for Coinbase so far, with the company reporting a net income of $1.16 billion and a net loss of $430 million for the first quarter. For comparison, Coinbase’s net income in the fourth quarter of last year was $2.49 billion.
Transaction Volume Decreased With Cryptocurrencies
As cryptocurrency prices have fallen in the last six months, significant decreases have been recorded in the trading volumes of exchanges. Mizuho Securities recently cut its forecast for Coinbase’s full-year 2022 revenue from $6.7 billion to $5.6 billion due to the “ crypto winter,” Barrons reports.
Amid the market drop, Coinbase shares are trading at all-time lows at $66. After the first exit above $328, the stock’s shares fell by 88 percent to $40.
Emilie Choi, president and chief corporate officer of Coinbase, recently announced that the company will slow down hiring in response to turbulent market conditions, saying:
Going into this year, we planned to triple the size of the company. Given current market conditions, we consider it prudent to slow down hiring and reassess our staffing needs based on our highest priority business goals.
Choi reassured that Coinbase is in a “strong position” and has a “solid balance sheet,” adding that Coinbase has gone through several market drops and is getting stronger each time.
After this success, it will be interesting to see if Coinbase makes it to Fortune’s 2023 list.
Fortune magazine has been publishing a list of top-earning companies since 1955, and US retail giant Walmart has been at number one for the past ten years in a row.