Bitcoin is down 17% in the last 12 months. Rest of the crypto market is sulking too. But the gatekeepers are making bank — onboarding new users into the world at record pace.
Coinbase particularly, knocked it out of the park for the last quarter of 2021, accelerating revenue growth, profitability, and reporting record engagement and trading volumes.
Quick look at key stats: 👀
- Made revenue of $2.5 billion, up over 320% YoY for the quarter!
- Profits of nearly $880 million, up a whopping 370%+ YoY — move along money losing fintechs
- 11.4 million monthly transacting users, up from 7.4 million in the last quarter
- Total retail trading volume jumped up 67% QoQ, to $547 billion
Some more crazy stats in the company’s annual shareholder letter.
Despite the kick-ass performance, management said momentum was slowing a bit for Q1 (the ongoing quarter), and stock lost 3% because of that.
FWIW, $COIN is down nearly 50% from its IPO price, and trades at a PE ratio of just 18x, while growing 200-300% at the topline!
Why care —getting average users to taste crypto (on-ramp, off-ramp as they call it) remains one of the brightest opportunities still. Coinbase has so far led innovation here, with an exchange, debit cards, lending crypto spend at merchants, institutional ownership… on and on. When does it become a steal in plain sight?