Coinbase's recent first quarter earnings report has proven to be extremely bullish. Revenue for the quarter increased by 22% and operational expenses decreased by 24% when compared to the preceding quarter. Assets on the exchange's platform also spurted to an impressive $130 billion, largely due to Bitcoin's 72% surge over the same period. CEO Brian Armstrong's decision to cut Coinbase's headcount by 950 people from the beginning of 2021 to the end of the quarter only further contributed to this success.

Despite Coinbase turning a profit, their stock COIN was down 83% from 2021 highs due to a tanking crypto market and overall macroeconomic issues. These monetary issues and SEC allegations led to the exchange suing to force the SEC to clarify crypto regulations. This case, as well as the possibility of Coinbase potentially relocating their headquarters outside of the US due to growing regulations were the other two key issues the company faced during this period.

Coinbase's offerings aren't without their own problems, however. To appease regulators, the exchange will be shutting down its Bitcoin borrowing services starting next week. The stock may take some time to adjust to this change, though Coinbase may be able to weather the storm. They've once again proven that they can generate results in a tricky market—a feat that may not have been possible without their ceasure of headcount and aggressive stance on regulations.



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