Coinbase Becomes The FIRST Crypto Company To Enter The “Fortune” 500

“Fortune” magazine announced the 2022 list of the top 500 companies, and Coinbase became the first crypto company to enter the “Fortune” 500, ranking 437th. Coinbase achieved $7.8 billion in revenue and $3.6 billion in profit in 2021.

It would have been hard for Coinbase to make the cut if the rankings were based on their business in 2022, instead of 2021. The company posted the net revenue of $1.16 billion and a net loss of $430 million for the first quarter. For comparison, Coinbase’s net revenue for the fourth quarter of last year was $2.49 billion.

Emilie Choi, Coinbase’s president and chief operational officer, has stated that the business will reduce recruiting as a result of the current market turmoil.

“Heading into this year, we planned to triple the size of the company. Given current market conditions, we feel it’s prudent to slow hiring and reassess our headcount needs against our highest-priority business goals,” she said.

What is Coinbase?

You’ve probably heard of Coinbase if you’re wanting to invest in cryptocurrency or use it as a payment method. After all, it’s one of the most popular cryptocurrency exchanges online, with tens of millions of users. It’s also one of the simplest methods to purchase bitcoin, which has contributed to its meteoric rise in popularity.

Coinbase is a cryptocurrency exchange that allows you to purchase popular currencies such as Bitcoin, Ethereum, and Litecoin. Although not every currency is offered by Coinbase, the site does support over 90 distinct types of cryptocurrencies. Meanwhile, dozens of other cryptocurrencies are accessible all over the world. Coinbase, on the other hand, allows you to exchange the most common forms of cryptocurrency, thus it’s suitable for most uses.

Coinbase began in 2012 as a platform for sending and receiving Bitcoin. The firm now employs over 3,700 people globally and supports dozens of different cryptocurrencies. Coinbase is a decentralised organisation with no central office.

Customers trade $547 billion every quarter on Coinbase, which has users from more than 100 countries. Coinbase is in charge of a thriving bitcoin ecosystem that includes over 11,000 financial institutions.

Coinbase Warning To Investors

Coinbase recently released its first-quarter earnings report which included a new disclosure to customers. It suggests the customers’ cryptocurrency could be at risk if the exchange ever went bankrupt. However, the company’s CEO tried to reassure customers there’s “no risk of bankruptcy.”

“Your funds are safe at Coinbase, just as they’ve always been,” Brian Armstrong, co-founder and CEO of Coinbase, tweeted. “We have no risk of bankruptcy, however we included a new risk factor based on an SEC requirement called SAB 121, which is a newly required disclosure for public companies that hold crypto assets for third parties.”

It will be fascinating to see if Coinbase is included on Fortune’s 2023 list. Since 1955, Fortune magazine has published a list of the top revenue-generating firms. Walmart has been the number one retailer in the United States for the past 10 years.

Sahil likes to use his great writing skills to curate articles about Crypto and KPOP here at Clout News.